Answer the following questions using the information below:
Manash Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data:

-What amounts are reported for revenues in the flexible-budget (A) and the static-budget (B), respectively?

Question

Answer the following questions using the information below:
Manash Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data:
 
-What amounts are reported for revenues in the flexible-budget (A) and the static-budget (B), respectively?

Quizplus · Accepted Answer

The flexible-budget revenue is based on actual levels of activity, while the static-budget revenue is based on planned levels of activity at the beginning of the period. Therefore, the flexible-budget revenue can differ from the static-budget revenue, which is why the amounts are different in option C.

Answer the Following Questions Using the Information Below