The Effect on Sales, Expenses, or Operating Income of Changes

question 41

Multiple Choice

The effect on sales, expenses, or operating income of changes in units sold is measured by the:

• A) Flexible-budget variance.
• B) Sales-volume variance.
• C) Sales price variance.
• D) Operating income flexible-budget variance.
• E) Production-volume variance.

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Definitions:

Finance Manager

A professional responsible for managing a company's financial activities, including budgeting, forecasting, and investment analysis.

Financing

The process or means of providing funds for business activities, making purchases, or investing.

Purchase Assets

The act of acquiring property, equipment, or other valuable items that are expected to generate revenue or appreciate in value over time.

Mutual Fund

An investment program funded by shareholders that trades in diversified holdings and is professionally managed.