The static-budget variance can be subdivided into the flexible-budget variance and the sales-volume variance.

Question

Quizplus · Accepted Answer

This statement is true. The static-budget variance, which measures the difference between actual results and the budgeted amounts, can be further broken down into the flexible-budget variance (which measures the difference between the flexible budget and the static budget) and the sales-volume variance (which measures the impact of changes in sales volume on the budgeted amounts).

The Static-Budget Variance Can Be Subdivided into the Flexible-Budget Variance