1.
Variance:
Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance.
Static Budget:
Static budget is a fixed budget prepared for a particular period of time without considering the fluctuations that may arise in the course of its action.
To calculate: Static budget variances and their percentages relating to static budget amount.
2.
Flexible Budget
Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit.
To calculate: Flexible budget variances and sales volume variance.
3.
To calculate: Selling price variance.
4.
Role of
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Cost Accounting: A Managerial Emphasis, 15th Edition
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