The flexible-budget variable cost variance includes all of the following except:
A)Direct materials variances.
B)Sales price variance.
C)Variable selling and administrative expenses variances.
D)Direct labor variances.
E)Variable overhead variances.

Question

Quizplus · Accepted Answer

The flexible-budget variable cost variance includes direct materials variances, variable selling and administrative expenses variances, direct labor variances, and variable overhead variances. However, the sales price variance is not included in the flexible-budget variable cost variance as it is a revenue variance, not a cost variance.

The Flexible-Budget Variable Cost Variance Includes All of the Following