A favorable flexible budget variance for variable expenses would indicate that:
A)fewer units were actually sold than the company had anticipated.
B)actual variable expenses of the company were less than the flexible budget variable expenses.
C)more units were actually sold than the company had originally budgeted to sell.
D)actual variable expenses were higher than the flexible budget variable expenses.

Question

Quizplus · Accepted Answer

A favorable flexible budget variance for variable expenses means that the actual variable expenses were less than what was expected in the flexible budget. This could happen if the company found ways to reduce variable costs, such as negotiating better prices for materials or improving production efficiency, or if actual sales were lower than anticipated.

A Favorable Flexible Budget Variance for Variable Expenses Would Indicate