Which of the Following BEST Describes Sales Volume Variance

question 66

Multiple Choice

Which of the following BEST describes sales volume variance?

• A) Difference between actual amounts and the flexible budget due to differences in price and costs
• B) Difference between the flexible budget and static budget due to differences in volumes
• C) Difference between the static budget and actual amounts due to differences in price
• D) Difference between the flexible budget and static budget due to differences in fixed expenses

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Definitions:

Competitive Price-searcher

This refers to a market situation where companies set their prices based on competition and market conditions, aiming to attract customers by offering better deals than their rivals.

Long-run Equilibrium

A state in which supply and demand balance over the long term, and all factors of production and economic variables have fully adjusted.

Demand Curve

A chart depicting how the cost of an item correlates with the amount of that item buyers are prepared to purchase.

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or restrict the ability of new competitors to enter a market.