An unfavorable flexible budget variance in variable expenses suggests a(n):
A)increase in price.
B)decrease in volume.
C)increase in variable expenses per unit.
D)decrease in fixed costs.

Question

Quizplus · Accepted Answer

An unfavorable flexible budget variance in variable expenses means that the actual variable expenses were higher than what was budgeted. This could happen due to an increase in variable expenses per unit, such as an increase in the cost of materials or labor required to produce each unit. Therefore, option C is the best choice. Options A, B, and D do not necessarily explain an unfavorable variance in variable expenses.

An Unfavorable Flexible Budget Variance in Variable Expenses Suggests A(n)