crterrill8728 crterrill8728
  • 05-09-2019
  • Business
contestada

Comparing a static planning budget to actual costs is not a good way to assess whether variable costs are under control. T/F

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Nyctalus
Nyctalus Nyctalus
  • 11-09-2019

Answer: False

Explanation: Static budget refers to that budget which is made for the upcoming period. A static budget incorporates anticipated values of inputs and outputs in it. It does sometimes assumes extreme business environment conditions.

Therefore, it is not feasible to compare the actual budget with the static plan as there is a high chance that both will differ by a high amount.

Hence, the given statement is false.

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