Efficiency is indicated by the ________ variances.
A)sales activity
B)static budget
C)flexible budget
D)strategic budget

Question

Quizplus · Accepted Answer

Flexible budget variances are used to measure efficiency by comparing actual costs incurred with what the costs should have been in relation to actual levels of output achieved. This helps to identify areas where costs were not optimized and resources could have been utilized more efficiently. The sales activity variance reflects the difference between budgeted sales and the actual sales achieved. The static budget variance measures the difference between actual results and what was budgeted at the start of the period. The strategic budget is a long-term plan setting out objectives and projected outcomes, and is not directly related to assessing efficiency.

Efficiency Is Indicated by the ________ Variances