Answer the following questions using the information below:
These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity.
-The best label for the formula (AP - BP)AQ is the ________.
A) efficiency variance
B) price variance
C) total flexible-budget variance
D) spending variance

Question

Quizplus · Accepted Answer

The formula (AP - BP)AQ represents the price variance, which measures the difference between the actual and budgeted cost per unit multiplied by the actual quantity purchased or produced.

Answer the Following Questions Using the Information Below