A direct materials flexible budget variance can be broken down into a price variance and an efficiency variance.

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Quizplus · Accepted Answer

This statement is true. The direct materials flexible budget variance can be analyzed by breaking down the difference between the budgeted amount and the actual amount into a price variance (difference between the actual price paid for materials and the standard price) and an efficiency variance (difference between the actual quantity of materials used and the standard quantity allowed).

A Direct Materials Flexible Budget Variance Can Be Broken Down