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

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

Quizplus · Accepted Answer

A static budget does not change with the level of activity; it is based on the planned level of activity and does not adjust for actual activity levels.

If the Actual Level of Activity Is 4% Less Than