A static budget is one that

Is based on the actual sales volume achieved during the period.

Is developed for a single level of expected output.

Is one component of the operating budget.

Is always used to compare with the actual results.

Materiality can be measured in terms of

Absolute dollars.

Relative percentages.

Both absolute dollars and relative percentages.

Neither absolute dollars or relative percentages.

The flexible budget variance is the difference between

The static budget and the flexible budget.

The flexible budget and actual results.

The actual quantity and budgeted quantity.

The actual price and the standard price.

The direct materials price variance is based on the amount of materials

purchased.

on hand.

used.

budgeted.

Which of the following is a reason a company would be willing to accept new business at a loss?

The new business will allow the company to reduce its fixed costs.

The new business will increase fixed costs.

The new business will always cover variable costs.

The new business may result in certain customers influencing other potential customers.