If the actual level of activity is 4% less than planned,then the fixed costs in the static budget should be decreased by 4% before comparing them to actual costs.

Name: If the actual level of activity is 4% less than planned,then the fixed costs in the static budget should be decreased by 4% before comparing them to actual costs.
Brand: Quizplus
Rating: 4.7 (30 reviews)

Question

Quizplus · Accepted Answer

Fixed costs do not vary with the level of activity, so they should remain the same in the static budget regardless of actual activity levels.

If the Actual Level of Activity Is 4% Less Than