An unfavorable flexible-budget variance for variable costs may be the result of ________.
A) using more input quantities than were budgeted
B) paying lower prices for inputs than were budgeted
C) selling output at a higher selling price than budgeted
D) selling less quantity compared to the budgeted

Question

Quizplus · Accepted Answer

An unfavorable flexible-budget variance for variable costs occurs when the actual costs incurred are higher than the budgeted costs due to using more input quantities than were budgeted. This could be a result of inefficient use of resources or unexpected increases in demand. B and C are favorable variances, as they result in lower costs or higher revenues than expected. D is an unfavorable variance for sales volume.

An Unfavorable Flexible-Budget Variance for Variable Costs May Be the Result