An unfavorable flexible budget variance in variable costs suggests a(n)________.
A) increase in sales price per unit
B) decrease in sales volume
C) increase in variable cost per unit
D) decrease in fixed costs

Question

Quizplus · Accepted Answer

An unfavorable flexible budget variance in variable costs suggests that the actual variable cost per unit is greater than the budgeted variable cost per unit. This could be due to factors such as an increase in raw material prices, higher labor costs, or increased expenses related to production. It would not be related to an increase in sales price per unit, decrease in sales volume, or decrease in fixed costs.

An Unfavorable Flexible Budget Variance in Variable Costs Suggests A(n)________