The flexible-budget variance for direct cost inputs can be further subdivided into a:
A)sales-volume variance and an efficiency variance.
B)static-budget variance and a price variance.
C)static-budget variance and a sales-volume variance.
D)price variance and an efficiency variance.

Question

Quizplus · Accepted Answer

The flexible-budget variance for direct cost inputs is typically divided into a price variance, which reflects the difference between actual and expected cost of materials or labor, and an efficiency variance, which measures the difference between the actual quantity of materials or labor used and the expected amount for the actual level of output.

The Flexible-Budget Variance for Direct Cost Inputs Can Be Further