A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.

Is budget a variance?

Budget variance equals the difference between the budgeted amount of expense or revenue, and the actual cost. Favourable or positive budget variance occurs when: Actual revenue is higher than the budgeted revenue.

Is flexible budget dynamic?

The fixed budget doesn't change as per the fluctuations of business. A fixed budget is always static. A flexible budget is very dynamic.