Onyx Company Prepared a Static Budget at the Beginning of the Month

question 93

Multiple Choice

Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows: Based on the above data, how much was the sales volume variance for fixed expenses?

• A)$2,970 U
• B)$4,500 F
• C)$380 U
• D)$0

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Definitions:

Fixed-income Securities

Financial instruments that pay a fixed amount of income, usually in the form of interest or dividends, like bonds or preferred stocks.

Pass-through Status

A business structure that allows profits to be passed directly to owners or shareholders without being subject to corporate taxes.

U.S. Tax Code

The U.S. Tax Code is the formal body of laws and rules that dictate how federal income taxes are collected from individuals and businesses by the U.S. government.

Diversified

The strategy of spreading investments across various financial assets to reduce risk and increase the potential for return.