The sum of the cost variances and efficiency variances equal ________.
A) the static budget variance
B) the flexible budget variance
C) the difference between the flexible budget and the static budget
D) the difference between the static budget and the previous year's actual results

Question

Quizplus · Accepted Answer

The sum of cost variances and efficiency variances equal the flexible budget variance. The flexible budget variance is the difference between the actual results and the flexible budget, which reflects the expected results based on the actual level of activity.

The Sum of the Cost Variances and Efficiency Variances Equal