The difference between amounts in the static budget and the flexible budget for a revenue center is caused by which of the following?
A)The cost of sales
B)The selling price per unit
C)The number of units sold differs from planned sales levels
D)Both the selling price and the number of units sold

Question

Quizplus · Accepted Answer

The difference between amounts in the static budget and the flexible budget for a revenue center is caused by the difference in the number of units sold from planned sales levels. The selling price per unit and the cost of sales should remain constant in both budgets. Therefore, option C is the correct answer. Option D is incorrect because the selling price per unit and the number of units sold cannot change at the same time in a revenue center.

The Difference Between Amounts in the Static Budget and the Flexible