A company is analyzing its month-end results by comparing it to both static and flexible budgets.During the previous month,the actual sales price was higher than the expected sales price as per the static budget.This difference results in a(n)________.
A) favorable flexible budget variance for sales revenues
B) favorable sales volume variance for sales revenues
C) unfavorable flexible budget variance for sales revenues
D) unfavorable sales volume variance for sales revenues

Question

Quizplus · Accepted Answer

A favorable flexible budget variance for sales revenues occurs because the actual sales price being higher than expected leads to higher revenues than projected in the flexible budget, which adjusts for actual sales volume.

A Company Is Analyzing Its Month-End Results by Comparing It