A Flexible-Budget Variance for Any Fixed Cost

Multiple Choice

A flexible-budget variance for any fixed cost:

A) Is defined as the difference between flexible-budget fixed cost and the level of fixed costs reflected in the master (static) budget.
B) Is undefined, except when actual output equals budgeted output.
C) Is typically zero, because the volume assumed in the flexible budget and the master budget for fixed costs is identical.
D) Is the difference between budgeted fixed cost and actual fixed cost.
E) Can be broken down into price and efficiency components.