The difference between actual variable overhead cost and flexible budget variable overhead amount is termed as __________?
Correct answer: A. overhead flexible budget variance
- A. overhead flexible budget variance
- B. overhead fixed budget variance
- C. overhead flexible cost variance
- D. overhead flexible price variance
Explanation
The difference between actual variable overhead and the variable overhead allowed by the flexible budget is the variable overhead flexible-budget or spending variance. It measures whether actual indirect variable costs were higher or lower than expected for the actual activity level.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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