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.

Question

Quizplus · Accepted Answer

The total variable cost flexible-budget variance can be broken down into variances for major costs like materials, labor, variable overhead, and variable selling expenses, reflecting differences between actual and budgeted costs for these components.

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