Static budget amount is subtracted from flexible budget amount to calculate the

A. sales budget variance

B. cost budget variance

C. resultant budget variance

D. static budget variance

Answer: Option A

Solution(By Examveda Team)

Static budget amount is subtracted from flexible budget amount to calculate the sales budget variance. A sales budget is management's estimate of sales for a future financial period. A business uses sales budgets to set department goals, estimate earnings and forecast production requirements.