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.

Question

Quizplus · Accepted Answer

Unfavourable flexible-budget variance for variable costs can be caused by either using more input quantities than were budgeted or paying higher prices for inputs than were budgeted. Therefore, option D, Both A and B are correct, is the best choice. Selling output at a higher selling price than budgeted would result in a favourable flexible-budget variance for revenue, not variable costs.

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