Q504
Subtracted flexible budget amount can form an actual result to calculate
A.
unstated budget variance
B.
flexible budget variance
AnswerC.
constant budget variance
D.
static budget variance
Answer: Option B
Solution
Answer: Option B
Solution:
Subtracted flexible budget amount can form an actual result to calculate flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.