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which of the following describe volume variance
-Answer is difference between fixed and flexible budget
but why not difference between fixed and actual result then what does that signifyIt depends which volume variance you are referring to.
The sales volume variance is the difference between the actual sales at standard profit or contribution and the budgeted sales at standard profit or contribution. That is the same as comparing the flexed budget profit or contribution with the original (fixed) budget sales or contribution.
(Whether it is profit or contribution depends on whether it is absorption or marginal costing).All of the variances are explained in detail in my free lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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