Flexible budget variances are the difference between the actual results and ________.
A) the static budget for the planned level of output
B) the flexible budget for the planned level of output
C) the flexible budget for the actual level of output
D) the master budget for the planned level of output

Question

Quizplus · Accepted Answer

Flexible budget variances compare actual results to what should have been achieved at the actual level of output, as calculated in the flexible budget. The static budget is prepared for a specific planned level of output, while the master budget includes multiple levels of output and is typically not used as a benchmark for performance evaluation.

Flexible Budget Variances Are the Difference Between the Actual Results