An actual cost is subtracted from flexible budget cost to calculate

A. positive cost variance

B. negative cost variance

C. flexible budget variance

D. flexible cost variance

Answer: Option C

Solution(By Examveda Team)

An actual cost is subtracted from flexible budget cost to calculate flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.