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

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Quizplus · Accepted Answer

If the total sales-activity variance and the static-budget variance are equal, it means that the actual sales volume was exactly equal to the budgeted sales volume. In this case, there will be no difference between the flexible budget and the static budget, and thus no flexible budget variance.

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