Which of the Following Informs Management Whether Units Sold Were

question 1

Multiple Choice

Which of the following informs management whether units sold were more or less than expected?

• A) Sales price variance
• B) Sales volume variance
• C) Market share variance
• D) Industry volume variance

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Definitions:

Negative Cash Flow

A situation where a company's outflows of cash exceed its inflows over a given period, indicating potential financial trouble.

Cash Turnover Ratio

A financial metric that measures how efficiently a company generates sales from its cash on hand.

Profit

The financial gain realized when the revenue from business operations and sales exceeds the expenses, taxes, and costs of producing and selling goods or services.

In-The-Black

A financial term indicating that a business is making a profit, as opposed to being "in the red" which means it is incurring losses.