The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-Identify which of the statements below is NOT a reason why actual results would differ from those projected in the master budget.
A) Current period projected sales volume differed from the prior period projection.
B) Actual sales volume differed from projected sales volume.
C) Variable costs per unit differed from expected amounts.
D) Actual fixed costs were different than expected.

Question

Quizplus · Accepted Answer

The master budget is based on projected sales volume for the current period, so a difference in projected sales volume from the prior period would not affect the current period's actual results compared to the master budget.

The Total Traceable Costs of the Account Billing Activity Centre