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If a company plans to sell 24,000 units of product but sells 30,000, the most appropriate comparison of the cost data associated with the sales will be by a budget based on

A. the original planned level of activity.
B. 30,000 units of activity.

C. 24,000 unitis of activity.

D. 27,000 units of activity

Respuesta :

Answer:

B. 30,000 units of activity.

Explanation:

Data provided in the question

Planned sales unit = 24,000 units

Actual sales units = 30,000 units

Based on the given information, the appropriate comparison is made when the planned sales units is compared with the actual sales units i.e 24,000 units with 30,000 units

So the budget should be based on 30,000 units of activity as it reflects the actual sales units

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