The difference between a revenue or cost item in the planning budget and the same item in the flexible budget at the actual level of activity is a(n) ______ variance.

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22-03-2022
Business

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The difference between a revenue or cost item in the planning budget and the same item in the flexible budget at the actual level of activity is a(n) ______ variance.

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Parrain Parrain · Answer 1 · 2022-03-24T11:05:29+01:00

When there is a difference between an item in the planning budget and the flexible budget, this is an activity variance.

What is an activity variance?

This is when items in the flexible budget and the planning budget are different based on the actual level of activity that the company saw as opposed to the planned level.

As this difference arises because of a difference in activity, it is labeled the activity variance.

Find out more on activity variance at https://brainly.com/question/25169847.