A flexible budget performance report for variable manufacturing costs shows .

a. only the activity variances.

b. both the activity variances and the spending variances.

c. both the revenue variances and the spending variances.

d. both the quantity variances and the price variances.

the correct answer is b. both the activity variances and the spending variances.

This is called a flexible because it shows the activity and spending variances. Allowing these variances enables the management to focus on how the activities and spending can change within a range and plan accordingly.

Explanation:

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two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.