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)(AQ)- (BP)(BQ)] is the:

Question

Quizplus · Accepted Answer

The formula [(AP)(AQ)- (BP)(BQ)] represents the total flexible-budget variance, which measures the difference between the actual revenue and expenses and the flexible budget based on the actual level of activity (AQ). It includes both the price and efficiency variances.

Answer the Following Questions Using the Information Below