The sales volume variance is the difference between the:
A) static budget (based on actual volume)and the flexible budget (based on planned volume).
B) static budget (based on planned volume)and the flexible budget (based on actual volume).
C) static budget (based on planned volume)and actual revenue or cost.
D) flexible budget (based on actual volume)and actual or revenue or cost.

Question

Quizplus · Accepted Answer

The sales volume variance represents the difference between the static budget (based on planned volume) and the flexible budget (based on actual volume). It shows the impact of the difference between planned and actual sales volumes on the company's revenue or cost. Options A, C, and D are not correct because they do not represent the sales volume variance.

The Sales Volume Variance Is the Difference Between The