Flexible budget variances are the deviations of actual results from the ________.
A) flexible budget amounts for the achieved level of activity
B) flexible budget amounts for the static level of activity
C) static budget amounts for the expected level of activity
D) static budget amounts for last year's level of activity

Question

Quizplus · Accepted Answer

Flexible budget variances compare actual results to the flexible budget, which is based on the achieved level of activity rather than the static budget (which is based on a set level of activity) or last year's level of activity. The flexible budget allows for adjustments in spending and revenue based on actual activity levels, making it a better benchmark for comparison to actual results.

Flexible Budget Variances Are the Deviations of Actual Results from the ________