A difference between a static budget amount for income and flexible budget amount is termed:
A) A profit variance.
B) An accounting return variance.
C) A sales volume variance.
D) A line item variance.

Question

Quizplus · Accepted Answer

A sales volume variance occurs when there is a difference between the expected sales in the static budget and the actual sales volume, which is reflected in the flexible budget. This variance helps in understanding the impact of the actual sales volume on the budgeted income.

A Difference Between a Static Budget Amount for Income and Flexible