Given an actual operating income of $250,000 and a static budget amount of $150,000, what is the static budget variance?

Multiple choice question for Direct Cost Variances and Management Control. Select an option, then review the explanation below.

Explanation

The static budget variance is calculated by subtracting the static budget amount from the actual result: $250,000 - $150,000 = $100,000. Therefore, the variance is $100,000.

Practice related questions from the same subject.

1.Within the hierarchy of costing and budgeting, which of the following represents a product sustaining cost?
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4.What term is used to describe the anticipated performance of a company?
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Given an actual operating income of $250,000 and a static budget amount of $150,000, what is the static budget variance?

Explanation

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