If a company plans to sell 16,000 units of a product and desires to sells 17,000 units, the most appropriate comparison of the cost data associated with the sales will be possible by a budget based on :

CS Executive · Cost and Management Accounting · PYQS · December 2019
If a company plans to sell 16,000 units of a product and desires to sells 17,000 units, the most appropriate comparison of the cost data associated with the sales will be possible by a budget based on :
(A) The original planned level of activity
(B) 18,000 units of activity
(C) 17,000 units of activity
(D) 16,000 units of activity

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Budgetary Control

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