The Flexible Budget Variance

Multiple Choice

The flexible budget variance:

A) directs management's attention to specific reasons for why budgeted income differed from actual operating income.
B) compares the static budget to the flexible budget.
C) removes any differences between budgeted operating income and actual operating income that are attributable to differences in budgeted and actual volume.
D) is most often used to determine whether or not there is sufficient demand for a company's product.