A favorable flexible budget materials variance may indicate that the price per unit of materials was lower than expected and that less material was used than expected,or either of these.

Question

Quizplus · Accepted Answer

A favorable flexible budget materials variance means that the actual cost of materials used was less than the expected cost. This could be due to a lower price per unit of materials or using less material than expected or both. Hence, A is the correct answer.

A Favorable Flexible Budget Materials Variance May Indicate That the Price