The subtracted flexible budget amount can form an actual result to calculate _____________?
Correct answer: B. flexible budget variance
- A. unstated budget variance
- B. flexible budget variance
- C. constant budget variance
- D. static budget variance
Explanation
Subtracting the flexible budget amount from the actual result measures the flexible-budget variance, which isolates differences in prices and costs at the actual activity level. The static-budget variance instead compares actual results with the original static budget.
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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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