A Difference Between the Static Budget Based on Planned Volume

question 33

Multiple Choice

A difference between the static budget based on planned volume and a flexible budget prepared at actual volume is called a

• A) flexible budget variance.
• B) volume variance.
• C) production activity variance.
• D) static budget variance.

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Definitions:

Dividends

Dividends are payments made by a corporation to its shareholder members, reflecting a portion of the corporate profits allocated for distribution.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, are subtracted from total revenue.

Revenue

The income received by a company from its business activities, usually from the sale of goods and services to customers.

Expenses

Money spent or cost incurred in an entity's efforts to generate revenue, representing the cost of doing business.