The total variable cost flexible-budget variance for any given period:
A) Is the difference between actual total variable cost incurred and master budgeted total variable cost.
B) Is decomposable into sales-volume and sales-mix components.
C) Is decomposable into production-volume and production-mix components.
D) Can be broken down into flexible-budget variances for major costs such as materials, labor, variable overhead, and variable selling expenses.
E) Is directly affected by the difference between actual sales volume and the sales volume embodied in the flexible budget.

Question

Quizplus · Accepted Answer

The total variable cost flexible-budget variance can indeed be broken down into variances for major variable costs like materials, labor, variable overhead, and variable selling expenses. This allows for a more detailed analysis of where variances are occurring.

The Total Variable Cost Flexible-Budget Variance for Any Given Period