The Flexible Budget Contains ________

question 136

Multiple Choice

The flexible budget contains ________.

• A) budgeted amounts for actual output
• B) static budget amounts for planned output
• C) actual costs for actual output
• D) actual costs for planned output

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the standard cost multiplied by the actual quantity used.

Standard Price

The anticipated or predetermined cost of a product, often used as a reference for evaluating actual costs.

Gallons

A unit of measurement for volume, commonly used to measure liquids.

Direct Labor Price Variance

A measure used in managerial accounting to calculate the difference between the actual cost of direct labor and the expected (or standard) cost, affecting the overall cost of production.