These Questions Refer to Flexible-Budget Variance Formulas with the Following

Multiple Choice

These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity. The best label for the formula [(AP) (AQ) - (BP) (BQ) ] is the ________.

A) efficiency variance.
B) price variance
C) total flexible-budget variance
D) spending variance