When the Budget Being Used Is a Static Budget,the Difference

question 30

Multiple Choice

When the budget being used is a static budget,the difference between actual results and budgeted results is referred to as a

• A)Static swing.
• B)Variable discrepancy.
• C)Static budget variance.
• D)Static budget fluctuation.

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Definitions:

Diseconomies of Scale

The phenomenon where, beyond a certain point, the cost per unit increases as a company continues to grow in size and output.

Per-Unit Cost

The average cost for each product produced, calculated by dividing the total production costs by the total units produced.

Output

The total quantity of goods or services produced by a firm, sector, or economy within a certain period of time.

Explicit Costs

Payments by a firm to purchase the services of productive resources.