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21 November, 08:13

An unfavorable flexible budget variance for variable expenses would indicate that: Group of answer choices the expenses of the company were less than what they had planned. more units were actually sold than the company had originally budgeted to sell. actual variable expenses were higher than the flexible budget variable expenses. fewer units were actually sold than the company had anticipated.

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  1. 21 November, 10:00
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    actual variable expenses were higher than the flexible budget variable expenses.

    Explanation:

    A flexible budget projects budget data (revenue and expenses) based on various or multiple levels of business activities, such as production sales.

    Also, a flexible budget variance gives the difference between the output resulting from a flexible budget and the actual outputs.

    A variance can either be favorable or unfavorable. An unfavorable flexible budget variance for variable expenses would indicate actual variable expenses were higher than the flexible budget variable expenses.

    Hence, If a company's actual net income is lower than it's planned, the variance is said to be unfavorable. Thus, higher costs and expenses would result in a unfavorable variance while higher revenues result in a favorable variance.

    A quantity variance and price variance can be used to measure the direct materials flexible budget variance.
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