The flexible budget variance is the difference between the actual results and the flexible-budget amount for the actual levels of the revenue and cost drivers.

Flexible Budget Variance

A financial performance measure that compares actual results with expected outcomes based on different levels of production or sales activity.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more accurate comparison to actual results.

Standard Costing

An accounting method where predetermined costs are used for valuing inventory and cost of goods sold, facilitating variance analysis to control costs.