Activity-level variances plus flexible-budget variances equals _____.
A)total static-budget variances
B)total standard variances
C)total actual variances
D)none of these answers is correct

Question

Quizplus · Accepted Answer

Activity-level variances plus flexible-budget variances equal total static-budget variances. This is because the static budget is prepared for a single, planned level of activity, and variances from it can be analyzed in terms of how actual activity levels differed (activity-level variances) and how performance relative to budget differed at those actual activity levels (flexible-budget variances).

Activity-Level Variances Plus Flexible-Budget Variances Equals _____