Which is NOT a reason for a static budget variance?
A)Actual sales volume was higher than projected sales volume.
B)Actual variable costs per unit were higher than expected variable costs per unit.
C)Actual fixed costs per unit were higher than expected fixed costs per unit.
D)Actual sales volume in current period was higher than projected sales volume in last period.

Question

Quizplus · Accepted Answer

Actual sales volume in the current period being higher than projected sales volume in the last period would result in a flexible budget variance, not a static budget variance. A static budget variance occurs due to differences between actual costs and revenues and the fixed budget amount.

Which Is NOT a Reason for a Static Budget Variance