Which statement would NOT be a reason for a flexible budget variance?
A) Material prices were different than expected.
B) Labor prices were different than expected.
C) Actual volume of activity was different than expected.
D) Amount of labor used per unit of output was different than expected.

Question

Quizplus · Accepted Answer

A flexible budget variance occurs due to differences in costs or spending, not because of differences in the volume of activity. Choices A, B, and D relate to cost variances, while C is about volume, which would affect a static budget variance, not a flexible one.

Which Statement Would NOT Be a Reason for a Flexible