A flexible budget performance report contains activity variances but not revenue or spending variances.

Question

Mauricio Fuentes · Accepted Answer

Final Answer : False, Explanation :  A flexible budget performance report contains both activity variances and revenue/spending variances. Activity variances reflect the difference between the actual level of activity and the expected level of activity, while revenue/spending variances reflect the difference between the actual revenues and expenses and the flexible budget amounts.

A flexible budget performance report contains activity variances but not revenue or spending variances.

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