The Term That Describes Differences Between Actual and Budgeted Results

question 21

Multiple Choice

The term that describes differences between actual and budgeted results is:

• A)divergence.
• B)discrepancy.
• C)mistake.
• D)variance.

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Definitions:

Relevant Range

The spectrum of operations where the premises regarding constant and fluctuating expenses hold true.

Sales Commissions

A portion of the selling price that is paid to sales employees as a reward for making sales or reaching targets.

Sales Volume

The total quantity of goods or services sold in a particular time period.

Fixed Cost

Expenses that remain unchanged regardless of the level of production or sales activity within a certain range and period.