If the Flexible Budget Variance Was $6,000 Favorable and the Sales

question 27

Multiple Choice

If the flexible budget variance was $6,000 Favorable and the sales activity variance was $3,000 Favorable,then the static budget variance was ________.

• A) $3,000 Favorable
• B) $3,000 Unfavorable
• C) $9,000 Favorable
• D) $9,000 Unfavorable

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, representing the cost of sacrificing the next best choice.

Oranges

A citrus fruit rich in vitamin C, grown in warm climates, and consumed either fresh or in juice form.

Peaches

Edible juicy fruits with fuzzy skins and a sweet taste, often grown in temperate regions.

Absolute Advantage

The skill of a person, business, or nation to generate a product or offer a service more affordably per unit than any other competitor.