When actual cost exceeds cost per the flexible budget, the resulting variance is called:Multiple Choicea "postitive variance" because actual cost minus budgeted cost equals a positive amount.a "flexible variance" because it is based on the flexible budget.an "unfavorable variance" because the higher actual cost decreased net income.a "negative variance" because its effect is unfavorable.

Actual cost is the expense incurred during a specific period . Cost as flexible budget is the fixed…

Answered: ostitive variance" because actual cost…

ostitive variance" because actual cost minus budgeted cost equals lexible variance" because it is based on the flexible budget. unfavorable variance" because the higher actual cost decreased ne

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

When actual cost exceeds cost per the flexible budget, the resulting variance is called:
Multiple Choice
a "postitive variance" because actual cost minus budgeted cost equals a positive amount.
a "flexible variance" because it is based on the flexible budget.
an "unfavorable variance" because the higher actual cost decreased net income.
a "negative variance" because its effect is unfavorable.

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