What May Cause a Sales Volume Variance for Fixed Expenses

question 150

Multiple Choice

What may cause a sales volume variance for fixed expenses?

• A)Insurance costs on the factory rise unexpectedly during the year due to a crisis in the insurance industry.
• B)The union calls for a strike of factory workers and temporary workers are hired to fill in for the striking employees.
• C)The lease on the manufacturing facility is renegotiated and the lease payments increase during the year.
• D)The number of units actually sold falls within a different relevant range than the static budget sales volume.

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Definitions:

Oral

Relating to the mouth.

Rectal

Relating to, or situated near the rectum, the final straight portion of the large intestine that ends at the anus.

Inspiration

To breathe in, inhale.

Tachycardia

A condition characterized by an abnormally high heart rate, exceeding the normal resting rate.