The flexible budget variance is the difference between expected results in the flexible budget for the actual units sold and the static budget.

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The flexible budget variance is the difference between what a company has actually spent (actual results) and what it should have spent, according to the flexible budget for the actual level of output. The static budget is not directly compared to the flexible budget for variance analysis; instead, the static budget is compared to actual results for a different type of variance analysis.

The Flexible Budget Variance Is the Difference Between Expected Results