Spark Company's Static Budget Is Based on a Planned Activity

question 57

Multiple Choice

Spark Company's static budget is based on a planned activity level of 45,000 units.At the same time the static budget was prepared,the management accountant prepared two additional budgets,one based on 40,000 units and one based on 50,000.The company actually produced and sold 49,000 units.In evaluating its performance,management should compare the company's actual revenues and costs to which of the following budgets?

• A) A budget based on 40,000 units
• B) A budget based on 45,000 units
• C) A budget based on 49,000 units
• D) A budget based on 50,000 units

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Definitions:

Measuring

The act or process of quantifying or assessing the size, amount, degree, or capacity of something.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual.

Measuring Instrument

A tool or device used to assess, quantify, or evaluate specific variables or phenomena, often used in research and experimental studies.

Valid

Logically sound, well-grounded, or acceptable according to the rules of a specific context or criteria.