Which of the Following Statements Is(are)true Regarding the Sales Activity

question 107

Multiple Choice

Which of the following statements is(are) true regarding the sales activity variance? (A) The sales activity variance is the actual selling price per unit times the difference between the budgeted units and actual units.(B) If the sales activity variance for sales revenue is unfavorable,then the contribution margin sales activity variance will be unfavorable.

• A) Only A is true.
• B) Only B is true.
• C) Neither A and B is true.
• D) Both A and B are true.

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Definitions:

Payment Stream

A series of payments made over a period of time, often in the context of loans or annuities.

Production Units

Quantities of output, such as goods or services, produced within a specified timeframe.

Demand Decrease

A reduction in the quantity of a product or service that consumers are willing and able to purchase at a given price.

Compounded Quarterly

Interest calculated and added to the principal four times a year.