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Commerce · Q512

Costing

Graduate and Post Graduate · Commerce · question 512

Q512

Difference between flexible budget amount and corresponding actual result is called

A.
corresponding variance
B.
resultant variance
C.
flexible budget variance
Answer
D.
static budget variance

Answer: Option C

Solution

Answer: Option C
Solution:
Difference between flexible budget amount and corresponding actual result is called flexible budget variance. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget.