Ashland Inc

Multiple Choice

Ashland Inc. is a manufacturer of small appliances. For which of the following activities would Ashland be more likely to use a static budget than a flexible budget?

A) For planning the amount of direct materials that will need to be purchased in the upcoming year.
B) For the evaluation of whether or not actual direct labor costs were reasonably close to budgeted direct labor costs.
C) For the comparing the actual manufacturing overhead costs with the budgeted manufacturing overhead costs during the year.
D) For the evaluation of whether or not employees made the most efficient use of their time.