Does price (rate) variance = flexible budget variance?
My question derives from this MCQ:
In analyzing company operations, the controller of the Jason corporation found a $250,000 favorable flexible-budget revenue variance. The variance was calculated by comparing the actual results with the flexible budget. This variance can be wholly explained by:
A. The total flexible budget variance
B. The total sales variance
C. Changes in unit selling prices -> Correct
D. Changes in the number of units sold
I initially picked "A" but my review materials explain that a flexible budget variance deals with costs, not revenues.
So can i fairly assume that Price (rate) variance = flexible budget variance (I.E ACTUAL EXPENSE VS FLEXIBLE EXPENSE) but since this instance deals with a difference in ACTUAL REVENUE AND FLEXIBLE REVENUE it cannot be called a flexible budget variance?
The help would be greatly appreciated.
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