Question

unfavorable flexible budget variances are those that are the result of lower than expected sales volume. true or false

Explanation:

Flexible budget variances relate to differences between actual and flexible budget amounts (based on actual activity), not just sales volume. Unfavorable variances for costs are when actual > budgeted, for revenues when actual < budgeted. Sales volume affecting static vs flexible budget is different; flexible budget adjusts for actual volume. So the statement is incorrect.

Answer:

False