Both the sales volume variance and the flexible budget variance help revenue center managers understand why they have exceeded or fallen short of budgeted revenue.

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Both the sales volume variance and the flexible budget variance are important tools for revenue center managers to identify why actual revenue did not meet budgeted revenue. The sales volume variance shows the difference between actual sales volume and the budgeted sales volume, while the flexible budget variance shows the difference between actual revenue and the revenue that should have been earned based on the flexible budget. By analyzing both of these variances, managers can identify whether the shortfall or excess revenue was due to changes in sales volume, changes in pricing, or changes in costs.

Both the Sales Volume Variance and the Flexible Budget Variance