Question

Which of the following causes the master budget variance between the amounts in the master budget and the flexible budget of a revenue​ center?

A. The number of units sold differs from planned sales levels
B. The cost of sales
C. The selling price per unit
D. Both the selling price and the number of units sold

Answer 1

Answer: The number of units sold differs from planned sales levels

Step-by-step explanation:

Out of the options that were given in the question, the option that will cause the master budget variance between the amounts in the master budget and the flexible budget of a revenue​ center is when the thee number of units sold differs from planned sales levels.

Since there is a difference between the amounts, it simply means that there will be a variance in the master budget as well.