Final answer:
The master (static) budget variance is called the overall budget variance, reflecting the difference between planned figures and actual results. It's a critical measure for assessing managerial performance against budgeted objectives.
Step-by-step explanation:
The master (static) budget variance is also called the overall budget variance. This variance measures the difference between what was planned or budgeted for the period against what was actually achieved. It provides an overall assessment of how well management performed against the original budget.
For example, if a company had budgeted sales of $100,000 and actual sales were $90,000, the overall budget variance would be $10,000 unfavorable because actual sales fell short of the budgeted amount. This kind of variance analysis is significant because it shows if a business is on track with its financial goals and can influence business decisions and strategies.