variance

Variances calculate the difference between the actual and budgeted results, and are calculated individually for each element of cost and revenue. Variance reporting is listing and commenting on the variances. Have you watched the free lectures on variance analysis?

I meant that does variance reporting compares actual results with original or flexed budget?

The operating statement explains why the actual profit is different from the original budget by listing all the variances. The sales variance compares actual with original budget. The cost variances are calculated by comparing actual with the flexed budget. Again, have you watched the free lectures (because this is all explained in the lectures)?

not yet

I suggest that you do watch :-)