If sales are the cost driver,unfavorable flexible budget variances result from ________.
A) actual costs exceeding planned costs
B) planned costs exceeding actual costs
C) actual sales exceeding planned sales
D) planned sales exceeding actual sales

Question

Quizplus · Accepted Answer

Unfavorable flexible budget variances occur when actual costs are higher than what was planned or budgeted for a given level of sales. This means that for the amount of sales achieved, the costs were higher than expected, leading to an unfavorable variance.

If Sales Are the Cost Driver,unfavorable Flexible Budget Variances Result