Differences between the master budget and the flexible budget are due to:
A) poor usage of material and labor
B) a combination of price and material variances
C) actual activity differing from expected activity levels
D) problems of cost control

Question

Quizplus · Accepted Answer

The differences between the master budget and the flexible budget arise because the master budget is based on expected activity levels, while the flexible budget adjusts for actual activity levels.

Differences Between the Master Budget and the Flexible Budget Are