The lump sum budgeted for fixed overhead will always be the same amount for the static budget and the flexible budget.

Question

Quizplus · Accepted Answer

The lump sum budgeted for fixed overhead does not change in the flexible budget because it represents a fixed cost that stays the same regardless of the level of activity. Therefore, the lump sum remains constant between the static budget and the flexible budget.

The Lump Sum Budgeted for Fixed Overhead Will Always Be