Asked by Jessica Robertson on Jul 24, 2024
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The flexible budget variance is the difference between the actual results and the flexible-budget amount for the actual levels of the revenue and cost drivers.
Flexible Budget Variance
A financial performance measure that compares actual results with expected outcomes based on different levels of production or sales activity.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity, providing a more accurate comparison to actual results.
Standard Costing
An accounting method where predetermined costs are used for valuing inventory and cost of goods sold, facilitating variance analysis to control costs.
- Differentiate among flexible budget variance, labour rate variance, and labour efficiency variance.
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Learning Objectives
- Differentiate among flexible budget variance, labour rate variance, and labour efficiency variance.
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