A Flexible-Budget Variance Measures the Impact on Short-Term Operating Profit

Multiple Choice

A flexible-budget variance measures the impact on short-term operating profit of:

A) Changes in sales volume.
B) Changes in output during the period.
C) Differences in sales mix—budgeted versus actual.
D) Selling price and cost differences—actual versus budgeted.
E) Selling price, but not cost, differences—actual versus budgeted.