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1. Which of the following should a management team should review to analyze a fixed cost...

1. Which of the following should a management team should review to analyze a fixed cost variance? A. The sales volume variance for fixed costs B. The flexible budget variance for fixed costs C. Both A and B above D. None of the above

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Answer #1

Your required answer is option B i.e. The flexible budget variance for fixed costs

Explanation:

Fixed cost variance means means difference between actual and budgeted fixed production cost incurred during the period. and Flexible budget variance for fixed cost is also difference between actual and budgeted amount of fixed cost.

secondly there is no any concept of The sales volume variance for fixed cost however sales volume variance is determined to know the difference the actual and budgeted volume of raw materials.

I hope this clear your doubt.

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