Identify which statement below would not be a possible reason for a variance between a flexible budget and actual results.
A) Labor prices were different than expected.
B) Material prices were different than expected.
C) The actual volume of activity was different than expected.
D) The amount of labor used per unit of output was different than expected.

Question

Quizplus · Accepted Answer

A flexible budget is designed to adjust for changes in the volume of activity, so a difference in actual volume would not cause a variance between the flexible budget and actual results.

Identify Which Statement Below Would Not Be a Possible Reason