What Is the Formula Managers Use to Calculate a Sales

question 1

Multiple Choice

What is the formula managers use to calculate a sales variance percentage?

• A) (Last period sales - This period sales) ÷ Last period sales = Sales variance %
• B) (Last period sales - This period sales) x Last period sales = Sales variance %
• C) (This period sales - Last period sales) ÷ Last period sales = Sales variance %
• D) (This period sales - Last period sales) x Last period sales = Sales variance %

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Definitions:

Frequency Distribution

A summary of data that shows the number of occurrences of each value or category of a variable.

Cumulative Frequency

The sum of a given frequency and all frequencies so far in a frequency distribution.

Cumulative Relative Frequency

A statistical measure showing the sum of the relative frequency of all values less than or equal to a specific value, often used to understand the distribution of data points within a dataset.

Percent Frequency Distribution

A tabular summary of data showing the percentage of observations in each of several nonoverlapping classes.