A Favorable Volume Variance for Sales Revenue Would Indicate That

question 174

Multiple Choice

A favorable volume variance for sales revenue would indicate that:

• A)fewer units were actually sold than the company had anticipated.
• B)the expenses of the company were less than what they had planned.
• C)more units were actually sold than the company had originally budgeted to sell.
• D)actual sales revenue was higher than the flexible budget sales revenue.

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Definitions:

Annuity Due

An annuity in which payments are made at the beginning of each period.

Equal Payments

Regular payments of the same amount over a specified period, often used in loan repayments or annuities.

Time Period

A specific duration marked by a start and an end point, often used to measure or track events, performance, or changes.

Ordinary Annuity

Regular payments of the same amount delivered at the close of successive intervals, across a specified timeframe.