Question: Define the volume variance. What causes it ? The volume variance is the difference between the flexible budget variance comprehensive budget and the actual results

Define the volume variance. What causes it?
The volume variance is the difference between the
flexible budget variance
comprehensive budget
and the
actual results
flexible budget
.
The only difference between these two budgets is the
sales price per unit
total fixed costs
variable costs per unit
volume of units on which they are based
.
Therefore, the volume variance is caused by differences between
actual and expected fixed costs
actual and expected volume
actual and expected sales prices
.

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