For overhead variances, the difference between the flexible budget amounts and actual costs incurred is called the:
A) Budget variance
B) Volume variance
C) Favourable variance
D) Quantity variance

Question

Quizplus · Accepted Answer

The difference between the flexible budget amounts and actual costs incurred is referred to as the budget variance. This variance helps in understanding how well the company managed its overhead costs compared to what was expected (flexible budget).

For Overhead Variances, the Difference Between the Flexible Budget Amounts