A(n)________ "arises because the number of units actually sold differs from the static budget units."
A)flexible budget
B)sales volume variance
C)benchmarking
D)overhead flexible budget variance

Question

Quizplus · Accepted Answer

Sales volume variance occurs when the actual number of units sold differs from the number of units planned for in the static budget. The flexible budget is a budget that adjusts to changes in activity level, but it is not specifically related to variances arising from differences in sales volume. The overhead flexible budget variance relates to variances in manufacturing overhead costs, not sales volume. Benchmarking is a process of comparing an organization's performance to that of other similar organizations, and is not related to this definition of a variance.

A(n)________ "Arises Because the Number of Units Actually Sold Differs