Which of the following variances in a comprehensive performance report using the flexible budget concept is the most appropriate for measuring efficiency of operations?
A) Sales volume variance.
B) Contribution margin variance.
C) Flexible budget variance.
D) Total static budget variance.

Question

Quizplus · Accepted Answer

The flexible budget variance is the most appropriate for measuring the efficiency of operations because it compares the actual results to what the budget should have been for the actual level of activity, thus directly reflecting operational efficiency.

Which of the Following Variances in a Comprehensive Performance Report