A. positive cost variance
B. negative cost variance
C. flexible budget variance
D. flexible cost variance
✅ The correct answer is option C.
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.
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.