Final answer:
The statement is false because the overhead volume variance is concerned with production volume affecting fixed overhead costs, whereas the difference between a flexible budget and actual overhead is an overhead spending or efficiency variance.
Step-by-step explanation:
The statement that the difference between the overhead flexible budget and the actual overhead is the overhead volume variance is false. In managerial accounting, the overhead volume variance refers to the difference between the budgeted overhead costs based on the standard production volume and the actual overhead costs based on the actual production volume.
However, when we compare the flexible budget, which adjusts for the actual level of activity, with the actual overhead costs incurred, the resulting variance is called the overhead spending variance or the overhead efficiency variance, depending on the nature of the difference. The volume variance specifically concerns the level of production and how it affects fixed costs or overhead, illustrating the concept of spreading the overhead, which means allocating the fixed costs over a number of units produced.
Accurately understanding these terms and their differences is crucial for effective cost control and management accounting.