The difference between the actual operating income of the period and master budget operating income for the period is defined as the:
A) Total flexible-budget variance.
B) Sales volume variance.
C) Sales price variance.
D) Operating income flexible-budget variance.
E) Total operating income variance.

Question

Quizplus · Accepted Answer

The total operating income variance is the difference between the actual operating income and the master budget operating income, encompassing all variances including sales volume and flexible-budget variances.

The Difference Between the Actual Operating Income of the Period