Topic $4$ DQ $2$

May $13-17,2024$

Discuss how a flexible budget performance report produces static budget variances. Explain why a static budget variance is divided into sales volume variances and flexible budget variances and differentiate sales volume variances from flexible budget variances.

Participate in follow$-$up discussion by assuming that you are the management accountant for a manufacturing firm and discuss whether you would be more concerned about sales volume variances or flexible budget variances.