A spending variance is calculated by comparing actual costs with the static budget.A spending variance is calculated by comparing actual costs with the flexible budget.

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Quizplus · Accepted Answer

A spending variance is calculated by comparing actual costs with the flexible budget, not the static budget. The flexible budget is adjusted for changes in activity levels, while the static budget remains fixed regardless of activity levels.

A Spending Variance Is Calculated by Comparing Actual Costs with the Static