An example of a variable cost is:
A) a payment to your raw materials supplier.
B) a lease payment on a piece of equipment.
C) a mortgage payment on buildings.
D) a monthly licensing fee for a software package.
Answer: A
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Budgeted input quantity information may be obtained from
a. actual input quantities used last period. b. standards developed by your company. c. data from other companies that have similar processes. d. all of the above.
A company is analyzing its month-end results by comparing it to both static and flexible budgets
During the previous month, the actual sales price was higher than the expected sales price as per the static budget. This difference results in a(n) ________. A) favorable flexible budget variance for sales revenues B) favorable sales volume variance for sales revenues C) unfavorable flexible budget variance for sales revenues D) unfavorable sales volume variance for sales revenues