The Difference Between the Actual Sales Volume for a Period

question 50

Multiple Choice

The difference between the actual sales volume for a period and the flexible-budget sales volume is equal to:

• A) The total sales volume variance for the period.
• B) The total production-volume variance for the period.
• C) The sales price variance for the period.
• D) The operating-income sales volume variance for the period.
• E) Zero—by definition.

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Definitions:

Revenues

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Expenses

The economic costs that a business incurs through its operations to earn revenue.

Accrued Fees

Accrued fees are charges earned or incurred that have not yet been received or paid, respectively, and are recognized in the accounting period they are earned.

Accounts Payable

Liabilities or money owed by a business to its suppliers or creditors for goods and services purchased on credit.