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

Question

Quizplus · Accepted Answer

The sales activity variance measures the difference in operating profits due to the difference between the budgeted sales volume and the actual sales volume, which is reflected in the master budget versus the flexible budget.

The Difference Between Operating Profits in the Master Budget and Operating