If a company plans to sell 48000 units of product but sells 60000 the most appropriate comparison of the cost data associated with the sales will be by a budget based on
A) the original planned level of activity.
B) 54000 units of activity.
C) 60000 units of activity.
D) 48000 units of activity.

Question

Quizplus · Accepted Answer

The most appropriate comparison of the cost data would be by a budget based on 60000 units of activity, as this reflects the actual level of sales and provides the most accurate basis for analyzing variances and performance.

If a Company Plans to Sell 48000 Units of Product