The difference between the flexible budget amount and the corresponding actual result is called ______________?
Correct answer: C. flexible budget variance
- A. corresponding variance
- B. resultant variance
- C. flexible budget 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.
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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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