In Analyzing Company Operations,the Controller of the Carson Corporation Found

question 75

Multiple Choice

In analyzing company operations,the controller of the Carson Corporation found a $250,000 favorable flexible budget revenue variance.The variance was calculated by comparing the actual results with the flexible budget.This variance can be wholly explained by: (CMA adapted)

• A) the total flexible budget variance.
• B) the total static budget variance.
• C) changes in unit selling prices.
• D) changes in the number of units solD.
• Since the flexible budget is based on actual output,the variation could only come from the selling price.

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Definitions:

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