Question

A flexible budget performance report for variable manufacturing costs shows _______.

a. only the activity variances.

b. both the activity variances and the spending variances.

c. both the revenue variances and the spending variances.

d. both the quantity variances and the price variances.

Answer 1

the correct answer is b. both the activity variances and the spending variances.

This is called a flexible because it shows the activity and spending variances. Allowing these variances enables the management to focus on how the activities and spending can change within a range and plan accordingly.

Step-by-step explanation: