The static budget variance is:
A)the difference between an actual result and the budget amount in the static budget
B)the difference between the budget amount in the static budget and the amount in the flexible budget
C)the difference between an actual result and the flexible budget amount
D)the difference between the static budget amount and the sales volume variance.

Question

Quizplus · Accepted Answer

The static budget variance is calculated as the difference between the actual result and the budget amount in the static budget. In other words, it measures the deviation between planned and actual results. B, C, and D are incorrect because they refer to different types of variances.

The Static Budget Variance Is