The flexible budget variance is subtracted from actual cost to calculate ___________?
Correct answer: A. flexible budget cost
- A. flexible budget cost
- B. flexible investment cost
- C. static budget cost
- D. static variable cost
Explanation
Flexible budget variance reconciles actual cost with the cost allowed for the actual activity level, so subtracting it from actual cost gives flexible budget cost. Investment and static budget costs are different measures.
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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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