Which of the following items would differ in amount when comparing the master and flexible budgets for a freight company in which actual sales resulted in $2,500,000 based on 8,000 shipments during a period that 7,800 shipments were budgeted?
A)Total sales revenue.
B)Equipment costs.
C)Rent.
D)All of the above will differ.

Question

Quizplus · Accepted Answer

Total sales revenue would differ as it is directly related to the number of shipments made. Equipment costs and rent are typically fixed costs and would not be affected by a change in the number of shipments.

Which of the Following Items Would Differ in Amount When