The static budget variance is the difference between the ________ and the ________.
A) amounts for the flexible budget; amounts for the static budget
B) flexible budget variance; activity level variance
C) actual results; amounts for the static budget
D) actual results; amounts for the flexible budget

Question

Quizplus · Accepted Answer

The static budget variance compares the actual results to the amounts in the static budget, making choice C the correct answer. Choice A is incorrect because the flexible budget is not relevant to the static budget variance. Choice B is incorrect because it mentions two different types of variances, both of which are different from the static budget variance. Choice D is incorrect because it compares actual results to the flexible budget, which is not what the static budget variance does.

The Static Budget Variance Is the Difference Between the ________