The static budget compared to flexible budget will compute a volume variance.

Question

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A static budget is set at the beginning of a period and does not change, while a flexible budget adjusts for changes in the volume of activity. The difference between what was actually spent or earned and what would have been expected based on the static budget, given the actual level of activity, is known as the volume variance. This variance helps in understanding how changes in activity levels affect financial performance.

The Static Budget Compared to Flexible Budget Will Compute a Volume