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 measures the difference between actual costs and costs that should have been incurred based on the actual level of output. It takes into account changes in the level of output and adjusts the budget accordingly, making it a better measure of performance than the static budget variance (C) which does not account for changes in output. The price variance (B) measures the difference between the actual price paid for a product or service and the expected price, while the sales volume variance (D) measures the difference between budgeted and actual sales volume.

The Difference Between Actual Costs and the Costs That Should