If a static budget forecasted 100,000 units to be sold in the fiscal year and actual units sold amounted to 120,000, what assumption could be made under a flexible budget process?

a.Fixed costs would increase in the flexible budget due to the volume change.

b.The effectiveness of the manager is in question.

c.Since the actual volume exceeds the budgeted volume, there is an unfavorable volume variance for output.

d.Variable costs will be higher than projected in the static budget due to the volume variance.