Question

Matching terms [10 min]

Answer 1

Answer: See explanation

Explanation:

1. Flexible budget

A flexible budget is referred to as a budget that adjusts with the changes in volume.

2. Static budget

This is the budget that's prepared for just one sales volume level.

3. Variance

The difference between an actual amount and the budget is referred to as the variance.

4. Flexible budget variance

Flexible budget variance is the difference between the actual results that are gotten and the results that are gotten through the flexible budget model.

5. Sales volume variance

This is the difference between the actual units that are sold and the expected number of units that are sold, which is then multiplied by budgeted price per unit.