In the relevant range,the sales-activity variance for fixed costs is always ________.
A) greater than the flexible budget variance
B) less than the flexible budget variance
C) greater than the static budget variance
D) zero

Question

Quizplus · Accepted Answer

In the relevant range, fixed costs remain constant regardless of changes in sales activity. Therefore, the sales-activity variance for fixed costs will always be zero.

In the Relevant Range,the Sales-Activity Variance for Fixed Costs Is