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(I found a question was asked the volume variance for the last month.In answer they compared between the Actual results and Fixed budget)….(In another question was asked the expenditure variance for the last month.In answer they compared between Flexed budget and Actual results.)What is the difference between these two methods?Could you tell me in detail?
Without seeing the questions your refer to it is impossible for me to answer!
The volume variance is the difference between the flexed budget and the original fixed budget (because the only difference is the volume of activity – the same standard costs are used), and the expenditure variance is the difference between the actual results and the flexed budgets (because they are both based on the same volume of activity).
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