Smith Corp

question 87

Multiple Choice

Smith Corp.has a $6 000 favourable flexible budget variance for January.If January's flexible budget net income was $100 000,which of the following statements is true?

• A) Smith's static budget must have showed net income of $106 000.
• B) Smith's static budget must have showed net income of $94 000.
• C) Smith's actual net income must have been $106 000.
• D) Smith's actual net income must have been $94 000.