Sales Volume Variances Can Have Significant Implications for Strategic Management

question 26

Multiple Choice

Sales volume variances can have significant implications for strategic management. An unfavorable sales volume variance may indicate that:

• A) The industry is in decline.
• B) The company needs a new competitive strategy.
• C) Product mix changes are favorable but quantity variances are unfavorable.
• D) Labor productivity needs to be addressed.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and cope with reality.

Displacement

in psychology, refers to the unconscious transfer of an intense emotion from its original object to another one.

Aggressive Impulses

Innate or instinctual drives that lead to aggressive behaviors, which can stem from frustration or perceived threats.

Defense Mechanism

Unconscious psychological strategies used by individuals to cope with reality and maintain self-image.