A Flexible-Budget Variance for Any Fixed Cost

question 48

Multiple Choice

A flexible-budget variance for any fixed cost:

• A)Is defined as the difference between flexible-budget fixed cost and the level of fixed costs reflected in the master (static)budget.
• B)Is undefined,except when actual output equals budgeted output.
• C)Is typically zero,because the volume assumed in the flexible budget and the master budget for fixed costs is identical.
• D)Is the difference between budgeted fixed cost and actual fixed cost.

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