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:

Drive Reduction

A theory in psychology that motivation arises from the body's attempt to reduce the state of tension caused by unmet biological needs.

Wire and Cloth

A reference to a set of classic experiments in developmental psychology, often associated with attachment theory, where baby monkeys showed preference for cloth surrogate mothers over wire ones, despite the wire mothers providing food.

Evolutionary Perspective

A theoretical approach that explains behavior and mental processes through the lens of adaptation and natural selection.

Attachment

Attachment is a deep and enduring emotional bond that connects one person to another across time and space, particularly evident in the relationships between infants and caregivers.