The difference between operating profits in the master budget and operating profits in the flexible budget is called:
A) sales activity variance.
B) flexible budget variance.
C) production volume variance.
D) total operating profit variance.

Question

Quizplus · Accepted Answer

The difference between operating profits in the master budget and operating profits in the flexible budget is called the sales activity variance, as it reflects the impact of the difference in sales volume.

The Difference Between Operating Profits in the Master Budget and Operating