The flexible budget variance for the revenues of company is classified as __________?
Correct answer: D. selling price variance
- A. primary variance
- B. investment variance
- C. profit variance
- D. selling price variance
Explanation
For revenue, the flexible-budget variance is commonly analysed as a selling-price variance because it compares the actual selling price with the budgeted price at the actual quantity sold. Investment and primary variance are not the relevant revenue variance classifications here.
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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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