Question

The sales volume variance is the difference between the? ________.

a. actual results and the expected results in the flexible budget for the actual units sold

b. flexible budget and static budget due to differences in fixed costs

c. static budget and actual amounts due to differences in sales price

d. expected results in the flexible budget for the actual units sold and the static budget

Answer 1

The sale volume variance is the difference between the flexible budget at actual output and the corresponding static budget amount. The flexible budget is the budget developed at the end of a period while the static budget is the master budget. A variance is the difference between the actual results and the budgeted amount. Sale variance volume is usually due to inaccurate forescasting of units of products that will be sold.