The flexible budget variance is influenced most heavily by actions of the
A)budget committee.
B)operations personnel.
C)sales personnel.
D)executives of the company.

Question

Quizplus · Accepted Answer

The flexible budget variance measures the difference between actual results and the budgeted amounts based on the actual level of activity. Therefore, it is mainly influenced by the actions of the operations personnel who are responsible for carrying out the activities and operations of the company. Sales personnel and executives may have an impact on the budget, but they are not directly responsible for executing the day-to-day activities that affect the flexible budget variance. The budget committee may have some influence, but ultimately it is the operations personnel who have the greatest impact on the flexible budget variance.

The Flexible Budget Variance Is Influenced Most Heavily by Actions