If the total sales-activity variance and the static-budget variance are equal to each other, there is no flexible-budget variance.

Question

Quizplus · Accepted Answer

This is because the flexible-budget variance is the difference between the actual results and the flexible budget, while the total sales-activity variance and static-budget variance are both measures of the difference between the actual results and the static budget. Therefore, if these two variances are equal, then the flexible-budget variance is zero.

If the Total Sales-Activity Variance and the Static-Budget Variance Are