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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › question

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
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  • June 27, 2021 at 4:29 pm #626487
    Avatarxyzc
    Participant
    • Topics: 413
    • Replies: 175
    • ☆☆☆☆

    The following statements have been made about flexible budgets.
    Flexible budgets enable proper comparisons to be made between actual and expected revenues and costs.
    In every variance reporting system with flexible budgets that compares budgeted and actual profit there must be a sales volume variance
    Which of the above statements is/are true?
    I think the second statement is incorrect because flexible budgets are based on actual quantity and actual figures are also based on actual quantity so the difference in volume or quantity is zero.

    June 28, 2021 at 6:05 am #626499
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54837
    • ☆☆☆☆☆

    The second statement is not true.

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