The difference between actual results and budgeted results is known as a variance. A variance represents the deviation or gap between what was planned or budgeted and what actually occurred. It provides a measure of the divergence between the expected and the real outcomes. Variances can be either favorable or unfavorable, depending on whether the actual results are better or worse than the budgeted expectations.
Management by exception refers to a management approach where managers focus their attention on significant deviations or exceptions that require action or explanation. In the context of variances, management by exception involves identifying and analyzing significant variances that require managerial attention.
A flexible budget is a budgeting tool that adjusts based on changes in activity levels or other relevant factors. It allows for the modification of budgeted amounts to reflect different levels of activity, making it more adaptable to actual circumstances.
While a flexible outcome is not a term typically used in the context of budgeting, it could refer to a desired result that can be adjusted or modified based on changing conditions or requirements.
Therefore, the correct answer is d. a variance.