The sales-volume variance is the difference between a flexible-budget amount and the corresponding static-budget amount (our initial prediction before actual results were known).

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Quizplus · Accepted Answer

This is correct. The sales-volume variance is typically calculated by taking the actual quantity sold and multiplying it by the difference between the selling price per unit in the flexible and static budgets. This measures the difference between what we expected to sell (the static budget) and what we actually sold (the flexible budget based on actual results).

The Sales-Volume Variance Is the Difference Between a Flexible-Budget Amount