Matching terms [10 min] Consider the following terms:

a. Flexible Budget

b. Flexible Budget Variance

c. Sales Volume Variance

d. Static Budget

e. Variance

Consider the following definitions:

——— 1. A summarized budget for several levels of volume that separates variable costs from fixed costs.

——— 2. The budget prepared for only one level of sales volume.

——— 3. The difference between an actual amount and the budget.

——— 4. The difference arising because the company actually earned more or less revenue, or incurred more or less cost, than expected for the actual level of output.

——— 5. The difference arising only because the number of units actually sold differs from the static budget units.

Requirement

1. Match each term to the correct definition.