If a Static Budget Forecasted 100,000 Units to Be Sold

question 43

Multiple Choice

If a static budget forecasted 100,000 units to be sold in the fiscal year and actual units sold amounted to 120,000,what assumption could be made under a flexible budget process?

• A)Since the actual volume exceeds the budgeted volume,there is an unfavourable volume variance for output.
• B)Fixed costs would increase in the flexible budget due to the volume change.
• C)The effectiveness of the manager is in question.
• D)Variable costs will be higher than projected in the static budget due to the volume variance.

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Definitions:

Prenatal Development

The process of growth and development within the womb from conception to birth, comprising various stages including the embryonic and fetal stages.

Partly Masculinized

Referring to the presence of physical or behavioral traits typically associated with males, to some degree, in an individual.

Partly Feminized

A description for something or someone exhibiting certain characteristics typically associated with femininity, but not exclusively or entirely.

Testosterone

Testosterone is a steroid hormone that plays a key role in the development of male reproductive tissues and the promotion of secondary sexual characteristics.