Which of the following statements is NOT true?
A)The volume variance for fixed cost will always be zero.
B)The flexible budget variance is the comparison of actual results to the flexible budget.
C)The flexible budget variance for fixed costs will always be zero.
D)When a flexible budget is used in a performance report, it is prepared for the actual level of units sold.

Question

Quizplus · Accepted Answer

The statement that the flexible budget variance for fixed costs will always be zero is not true. While the total fixed costs will remain constant in a flexible budget, the actual level of activity may differ from the budgeted activity level, resulting in a flexible budget variance for fixed costs.

Which of the Following Statements Is NOT True