Spending variances are generated when

a. budgeted costs for the planning level of activity are compared with budgeted costs for the flexible level of activity.

b. budgeted costs for planning level of activity are compared with actual costs for the same level.

c. budgeted costs for actual level of activity are compared with actual costs for the same level.

d. actual costs for actual level of activity are compared with actual costs for the planning level of activity.

Question

Annabel Mora

Physics

22 September, 22:49

Spending variances are generated when

a. budgeted costs for the planning level of activity are compared with budgeted costs for the flexible level of activity.

b. budgeted costs for planning level of activity are compared with actual costs for the same level.

c. budgeted costs for actual level of activity are compared with actual costs for the same level.

d. actual costs for actual level of activity are compared with actual costs for the planning level of activity.

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Answers (1)

Know the Answer?

Kole Marquez · Answer 1

b. budgeted costs for planning level of activity are compared with actual costs for the same level.

Explanation:

spending variance is the difference between the actual and expected (or budgeted) amount of an expense.