Total static budget variances are equal to the sum of activity-level variances and flexible budget variances.

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Quizplus · Accepted Answer

Total static budget variances are indeed equal to the sum of activity-level variances (which compare the static budget to the flexible budget) and flexible budget variances (which compare the flexible budget to actual results), as they collectively account for the differences due to both changes in activity levels and performance against budgeted amounts.

Total Static Budget Variances Are Equal to the Sum of Activity-Level