Which of the Following BEST Describes Flexible Budget Variance

question 84

Multiple Choice

Which of the following BEST describes flexible budget variance?

• A) Difference between actual amounts and the flexible budget due to differences in price and costs
• B) Difference between the flexible budget and static budget due to differences in volumes
• C) Difference between the flexible budget and actual amounts due to differences in volumes
• D) Difference between the flexible budget and static budget due to differences in fixed expenses

---

Definitions:

Market Value

The prevailing market rate at which a service or asset is available for purchase or sale.

Paid-in Capital

The total amount of money investors have contributed to a company in exchange for shares of stock.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the number of shares owned by shareholders.

Stockholders' Equity

The residual interest or ownership in the assets of a corporation after deducting liabilities, often referred to as shareholders' equity.