The Budget for a Given Cost During a Given Period

Multiple Choice

The budget for a given cost during a given period was $80,000. The actual cost for the period was $72,000. Considering these facts, the plant manager has done a better-than-expected job in controlling the cost if: (CPA adapted)

A) the cost is variable and actual production was 90% of budgeted production.
B) the cost is variable and actual production equals budgeted production.
C) the cost is variable and actual production was 80% of budgeted production.
D) the cost is a discretionary fixed cost and actual production equals budgeted production.