The difference between static budget amount and the flexible budget amount is named as ___________?
Correct answer: B. sales volume variance
- A. sales mix variance
- B. sales volume variance
- C. flexible budget variance
- D. static budget variance
Explanation
The difference between the static budget and the flexible budget reflects the effect of the actual activity or sales volume, and is called sales volume variance. Flexible budget variance instead compares the flexible budget with actual results.
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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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