More insight into the static-budget variance can be gained by subdividing it into ________.
A) the sales-mix variance and the sales-quantity variance
B) the market-share variance and the market-size variance
C) the flexible-budget variance and the sales-volume variance
D) the flexible-budget variance and the sales-mix variance

Question

Quizplus · Accepted Answer

The static-budget variance can be more insightfully analyzed by dividing it into the flexible-budget variance and the sales-volume variance. This subdivision helps in understanding the differences due to actual performance versus planned performance (flexible-budget variance) and the impact of the difference in the actual versus expected sales volume (sales-volume variance).

More Insight into the Static-Budget Variance Can Be Gained by Subdividing