Which of the following statements concerning performance reports is incorrect? The activity level used to populate the flexible budget is based on the actual "units." A favorable sales revenue flexible budget variance would indicate that the actual sales price was higher than the sales price used in the master budget. All material flexible budget variances should be investigated. The master budget variance is equal to the sum of the volume variance plus the flexible budget variance. O The master budget and the flexible budget use different cost behavior equation to calculate budgeted expenses.

Which of the following statements concerning performance reports is incorrect? The activity level used to populate the flexible budget is based on the actual "units." A favorable sales revenue flexible budget variance would indicate that the actual sales price was higher than the sales price used in the master budget. All material flexible budget variances should be investigated. The master budget variance is equal to the sum of the volume variance plus the flexible budget variance. O The master budget and the flexible budget use different cost behavior equation to calculate budgeted expenses.

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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