What Might Be Unfavourable Flexible-Budget Variance for Variable Costs the Result

question 54

Multiple Choice

What might be unfavourable flexible-budget variance for variable costs the result of?
Variant question

• A)Using more input quantities than were budgeted
• B)Paying higher prices for inputs than were budgeted
• C)Selling output at a higher selling price than budgeted
• D)Both A and B are correct.

---

Definitions:

Purely Competitive Firm

Describes a business that operates in a market where no single company can influence prices, due to the presence of many sellers offering identical products.

Output

The quantity of goods or services produced in a certain period of time by a person, machine, or industry.

Price Taker

A market participant who has no influence over the market price and must accept the prevailing market price for its products or services.