The difference between the flexible budget amount and the corresponding actual result is called ______________?
Correct answer: A. flexible budget variance
- A. flexible budget variance
- B. resultant variance
- C. corresponding variance
- D. static budget variance
Explanation
Flexible budget variance compares what should have been spent or earned at the actual activity level with what actually occurred. Static budget variance instead compares the original budget with actual results without adjusting activity.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate _____________?
The flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be __________?
If the sales budget variance is $57000 and the flexible budget amount is $97000, then the static budget amount will be _____________?
The static budget amount is subtracted from the flexible budget amount to calculate the __________?
The flexible budget amount is added to flexible budget variance to calculate
If the sales budget variance for operating income is $68000 and the static budget amount is $19000, then flexible budget amount will be ____________?