Question

Difference between actual result and corresponding amount of flexible budget, on the basis of actual level of output is classified as ___________.

Group of answer choices:
A. Sales mix variance
B. Sales volume variance
C. Flexible budget variance
D. Static budget variance

Answer 1

The correct answer is C. Flexible budget variance .

Step-by-step explanation:

Variation of flexible budget is the difference that is generated after considering the actual results of production and the amount actually determined as part of the flexible budget for the real levels of income and cost generators. For control terms, this difference is taken to know the real variation of what is produced vs. what is budgeted.