The flexible budget variance is influenced most heavily by actions of
A)The budget committee.
B)The operations personnel.
C)The sales personnel.
D)The executives of the company.

Question

Quizplus · Accepted Answer

The flexible budget variance is the difference between actual results and flexible budget amounts. Since the flexible budget is based on actual output and activity levels, it means that the flexible budget variance is influenced most heavily by the actions of the operations personnel who determine the level of activity and output. The budget committee, sales personnel, and executives of the company can also influence the variance, but to a lesser extent.

The Flexible Budget Variance Is Influenced Most Heavily by Actions