A Company Is Analyzing Month-End Results Compared to Both Static

Multiple Choice

A company is analyzing month-end results compared to both static and flexible budgets. This month the actual fixed expenses were lower than projected in the static budget. What kind of variance would that produce?

A) Favorable flexible budget variance for fixed expenses
B) Favorable sales volume variance for fixed expenses
C) Unfavorable flexible budget variance for fixed expenses
D) Unfavorable sales volume variance for fixed expenses