Why Is the Flexible-Budget Variance for Revenues Referred to as the Selling-Price

question 32

Multiple Choice

Why is the flexible-budget variance for revenues referred to as the selling-price variance?

• A)It is a result of the difference between the actual selling price and budgeted selling price.
• B)It is a result of the actual selling price deducted from the price recovery component.
• C)It is the variance by which selling prices are calculated.
• D)It is a result of the average of the selling prices from several cycle periods.
• E)It is based on the difference between the growth component and the price recovery component.

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