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Management · Q193

Management Accounting

Graduate and Post Graduate · Management · question 193

Q193

Difference between actual variable overhead cost and flexible budget variable overhead amount is termed as

A.
overhead flexible budget variance
Answer
B.
overhead fixed budget variance
C.
overhead flexible cost variance
D.
overhead flexible price variance

Answer: Option A

Solution

Answer: Option A
Solution:
Difference between actual variable overhead cost and flexible budget variable overhead amount is termed as overhead flexible budget variance. A flexible budget is a budget that shows differing levels of revenue and expense, based on the amount of sales activity that actually occurs.