The Variable Overhead Flexible-Budget Variance Measures the Difference Between

question 17

Multiple Choice

The variable overhead flexible-budget variance measures the difference between:

• A)actual variable overhead costs and the static budget for variable overhead costs
• B)actual variable overhead costs and the flexible budget for variable overhead costs
• C)the static budget for variable overhead costs and the flexible budget for variable overhead costs
• D)None of these answers is correct.

---

Definitions:

Selling Division

A segment of a business organization responsible for the external sales of the company’s products or services.

Profit Centers

Divisions or segments of a business that are responsible for generating revenue and profit above their direct and indirect costs.

Lemonade Stand

A small, temporary drink stand often run by children, where lemonade is sold, typically as an introduction to business principles.

Transfer Price

The price at which goods, services, or intellectual properties are traded between different divisions within the same company.