A company is analyzing its month-end results by comparing it to both static and flexible budgets.During the previous month,the actual variable costs per unit were lower than the expected variable costs per unit as per the static budget.This difference results in a(n)________.
A) favorable flexible budget variance for variable costs
B) favorable sales volume variance for variable costs
C) unfavorable flexible budget variance for variable costs
D) unfavorable sales volume variance for variable costs

Question

Quizplus · Accepted Answer

A lower actual variable cost per unit than the expected variable cost per unit as per the static budget creates a favorable flexible budget variance for variable costs, as the company spent less than anticipated.

A Company Is Analyzing Its Month-End Results by Comparing It