A flexible-budget variance can be decomposed into an efficiency variance and a price variance.

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This is true. A flexible-budget variance compares the actual cost with a budget that adjusts for changes in activity levels. This variance can be further broken down into two components: the efficiency variance, which measures the difference between the actual cost and the cost that should have been incurred given the level of activity, and the price variance, which measures the difference between the actual cost per unit and the expected cost per unit.

A Flexible-Budget Variance Can Be Decomposed into an Efficiency Variance