A Favorable Sales Volume Variance in Variable Expenses Suggests A(n)

question 109

Multiple Choice

A favorable sales volume variance in variable expenses suggests a(n) :

• A) increase in volume.
• B) decrease in volume.
• C) increase in variable expenses per unit.
• D) decrease in fixed costs.

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Definitions:

Current

In finance, "current" typically refers to assets and liabilities that are expected to be realized or settled within one year from the reporting date.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Net Income

The amount of earnings remaining after all expenses and taxes have been subtracted from total revenue.

Return Ratio

Financial metrics used to evaluate the efficiency or profitability of an investment relative to its cost.