The Sales Volume Variance Reflects

question 12

Multiple Choice

The sales volume variance reflects

• A)how efficiently the company operated in producing a given level of sales.
• B)how effectively the company reached its strategic goals.
• C)a different volume of activity than that specified in the static budget.
• D)the amount of each resource actually used in operations.

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Definitions:

Invested

Funds or resources allocated for the purpose of generating income or profit.

Interest

The amount paid by a borrower to a lender over a period of time for the use of money, expressed as a percentage of the principal.

Months

Units of time in calendars that approximately correspond to the period of the Earth moving in its orbit around the Sun, usually divided into 12 periods in a year.

Deposit

Money placed into a financial institution for safekeeping, which can earn interest depending on the account type.