A $5,000 Unfavorable Flexible-Budget Variance Indicates That ________

question 46

Multiple Choice

A $5,000 unfavorable flexible-budget variance indicates that ________.

• A) the flexible-budget amount exceeded actual variable manufacturing overhead by $5,000
• B) the actual variable manufacturing overhead exceeded the flexible-budget amount by $5,000
• C) the flexible-budget amount exceeded standard variable manufacturing overhead by $5,000
• D) the standard variable manufacturing overhead exceeded the flexible-budget amount by $5,000

---

Definitions:

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change regardless of a price change.

Midpoint Method

A technique used to calculate the percentage change between two values, offering a more precise method than simple percentage calculations.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often used to understand the sensitivity of demand in relation to price changes.

Midpoint Method

A technique used in economics to calculate the percentage change in variables, offering a more precise measure of elasticity between two points.