What differences do volume variances examine?
A)the differences between static budget and actual costs
B)the differences between flexible budget and static budget
C)the differences between static budget and the rolling budget
D)the differences between flexible budget and rolling budget

Question

Quizplus · Accepted Answer

Volume variances examine the differences between flexible budget and static budget. The flexible budget adjusts for changes in activity levels, while the static budget remains unchanged regardless of actual activity levels. Therefore, volume variances measure the impact of changes in activity levels on budgeted costs and revenues.

What Differences Do Volume Variances Examine