An Unfavorable Sales Volume Variance in Operating Income Suggests A(n)________

question 195

Multiple Choice

An unfavorable sales volume variance in operating income suggests a(n) ________.

• A) increase in number of actual units sold when compared to the expected number of units sold
• B) decrease in number of actual units sold when compared to the expected number of units sold
• C) increase in variable cost per unit
• D) decrease in fixed costs

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Definitions:

Externalities

Costs or benefits that affect parties who did not choose to incur those costs or benefits, often leading to market failures.

Polluting

The act of contaminating the environment with pollutants, such as chemicals, noise, or heat, that can harm organisms and the ecosystem.

Treatment Plant

A facility where pollutants are removed from water, air, or waste to reduce environmental impact and protect public health.

Filter

A device or process that removes unwanted parts from a substance or signal.