If Sales Are the Cost Driver,unfavorable Flexible Budget Variances Result

question 56

Multiple Choice

If sales are the cost driver,unfavorable flexible budget variances result from ________.

• A) actual costs exceeding planned costs
• B) planned costs exceeding actual costs
• C) actual sales exceeding planned sales
• D) planned sales exceeding actual sales

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Definitions:

Baseball Hat

A type of soft cap with a rounded crown and a stiff bill projecting in front.

Tax

A mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Marginal Tax Rate

The amount of tax paid on an additional dollar of income, which is typically a percentage that increases as income rises.

Horizontal Equity

The principle of tax fairness that states individuals with similar income and ability to pay should be taxed at the same rate.