The difference between corresponding static budget and flexible budget amount is called __________?

Correct answer: A. sales volume variance

  • A. sales volume variance
  • B. sales mix variance
  • C. sales quantity variance
  • D. market share variance

Explanation

The difference between corresponding static-budget and flexible-budget amounts measures the effect of the change in activity or sales volume, so it is sales volume variance. Sales mix and market share variances analyse different causes of sales performance.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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