If the actual level of activity is 4% more than planned,then the costs in the static budget should be increased by 4% before comparing them to actual costs.

Name: If the actual level of activity is 4% more than planned,then the costs in the static budget should be increased by 4% before comparing them to actual costs.
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Question

Quizplus · Accepted Answer

A static budget does not change with the level of activity; it remains the same regardless of actual activity levels, so costs would not be adjusted based on actual activity levels.

If the Actual Level of Activity Is 4% More Than