The Flexible Budget Variance

question 84

Multiple Choice

The flexible budget variance:

• A) directs management's attention to specific reasons for why budgeted income differed from actual income.
• B) compares the static budget to the flexible budget.
• C) removes any differences between budgeted operating income and actual income that are attributable to differences in budgeted and actual volume.
• D) is most often used to determine whether or not there is sufficient demand for a company's product.