All variances other than the production-volume variance are essentially flexible-budget variances.

Question

Quizplus · Accepted Answer

The production-volume variance is the only variance that is not affected by changes in the budgeted amounts or expected results. All other variances, such as the materials price variance or labor efficiency variance, relate to differences between actual and expected results and represent deviations from the flexible budget.

All Variances Other Than the Production-Volume Variance Are Essentially Flexible-Budget