A Flexible-Budget Variance Is $600 Favorable for Unit-Related Costs

question 89

Multiple Choice

A flexible-budget variance is $600 favorable for unit-related costs. This indicates that costs were ________.

• A) $600 more than the master budget
• B) $600 less than for the planned level of activity
• C) $600 more than standard for the achieved level of activity
• D) $600 less than standard for the achieved level of activity

---

Definitions:

Miscellaneous Revenue

Income from sources other than the main business activities, such as rental income or interest income.

Cash Over And Short

An account that records the discrepancies between the actual cash received and the expected amount.

Credit Balance

An accounting term that signifies a positive balance in a liability, revenue, or equity account, which increases on the credit side and decreases on the debit side.

Petty Cash Fund

A nominal sum of cash reserved for quick payments of assorted trivial expenses.