budget

Question 1

Static budget

Answer 1

• at one point in time
• doesn’t not compare @ different volume levels of activity
• only works for Fixed OH

Question 2

You have to compare

Answer 2

At the SAME level of volume activity

Question 3

Flexible budget

Answer 3

• Compares actual quantity to expected standard price AQ x SP
• Purpose of Flex budget is to measure costs at different volume levels of activity
• DM
• DL