Differences between the actual results and the flexible budget at the actual level of output achieved are ________ variances.
A) static budget
B) activity budget
C) flexible budget
D) operating budget

Question

Quizplus · Accepted Answer

The differences between the actual results and the flexible budget at the actual level of output achieved are flexible budget variances. Flexible budget is a budget that adjusts to changes in activity levels and shows what the budget should have been for the actual level of activity. Static budget is a budget that remains unchanged as activity levels change. Activity budget and operating budget are not relevant to this concept.

Differences Between the Actual Results and the Flexible Budget at the Actual