Sales results that are evaluated by a static budget might show
1) favorable differences that are not justified.
2) unfavorable differences that are not justified.
A) 1
B) 2
C) both 1 and 2.
D) neither 1 nor 2.

Question

Quizplus · Accepted Answer

A static budget assumes that all variables remain constant, but in reality, sales results may be affected by various factors such as market demand, economic conditions, and competition. Therefore, favorable or unfavorable differences between actual sales and the static budget may not be justified and may lead to incorrect conclusions about sales performance.

Sales Results That Are Evaluated by a Static Budget Might