The Difference Between the Flexible-Budget Operating Income and the Actual

question 177

Multiple Choice

The difference between the flexible-budget operating income and the actual operating income in a period is the:

• A) Sales mix variance.
• B) Sales volume variance.
• C) Sales price variance.
• D) Operating income flexible-budget variance.
• E) Total operating income variance.

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Definitions:

Dense

Having a high mass per unit volume; closely compacted in substance.

Arête

A sharp, narrow ridge found in rugged mountains, formed by the erosion of two glaciers side by side.

Depression

In geology, a landform sunk below its surroundings, forming a low area which can be natural or man-made.

Valley

A low area between hills or mountains, typically with a river running through it.