Since Fixed Overhead Does Not Vary with Volume Within the Relevant

question 161

Multiple Choice

Since fixed overhead does not vary with volume within the relevant range,the flexible budget will always agree with

• A)Actual results.
• B)Static budget.
• C)Both actual results and the static budget.
• D)Neither actual results nor the static budget.

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Definitions:

Total Revenue

The total income received by a firm from sales of its products or services.

Increase

A rise or growth in quantity, size, number, or some other measure.

Inelastic Demand

A situation where the demand for a good or service is not significantly affected by changes in its price.

Downward-Sloping

A term often used to describe demand curves, indicating that as the price decreases, the quantity demanded increases.