The difference between actual costs and the costs that should have been incurred for the actual number of outputs is called the:

Question

Quizplus · Accepted Answer

The flexible budget variance represents the difference between the actual costs incurred and the costs that should have been incurred based on the flexible budget (which adjusts for changes in output levels). The price variance is the difference between the actual price paid for inputs and the expected price. The static budget variance represents the difference between actual costs and the budgeted (static) costs. The sales volume variance measures the impact of actual sales volume compared to budgeted sales volume on profits.

The Difference Between Actual Costs and the Costs That Should