ECONOMICS

Detailed explanation-1: -The flexible budget variance is the difference between the actual results and the expected results in the flexible budget for the actual units sold. A flexible budget is a type of budget that changes based on the level of volume or activity such as the number of units sold.

Detailed explanation-2: -Flexible budget variances are the differences between line items on actual financial statements and those that are on flexible budgets. Since the actual activity level is not available before the accounting period closes, flexible budgets can only be prepared at the end of the period.

Detailed explanation-3: -Answer and Explanation: Sales volume variance is the difference between the flexible budget and the static budget. A flexible budget is based on the standard cost and actual results while a static budget is based on the standard cost and standard cost.

Detailed explanation-4: -What is a flexible budget variance? A flexible budget is a budget that accounts for an increase or decrease in expenses and revenue. While a standard or static budget is one figure over time, you calculate and adjust the flexible budget based on actual output and variable costs.

Detailed explanation-5: -The difference between the actual results and the static budget is called the static budget variances. It does not allow the changes in the level of activity that is incorrect. It is adjusted for the actual level of production and is not suited for performance measurement.