The static-budget variance will be favorable, when ________.
A) budgeted unit sales are more than actual unit sales
B) the actual contribution margin is less than the static-budget contribution margin
C) the actual sales mix shifts toward the less profitable units
D) the flexible-budget and the sales-volume variance are favorable

Question

Quizplus · Accepted Answer

The static-budget variance will be favorable when both the flexible-budget variance and the sales-volume variance are favorable. This indicates that the company performed better than expected in terms of both sales volume and cost/revenue management, leading to a favorable comparison against the static (fixed) budget.

The Static-Budget Variance Will Be Favorable, When ________