An Unfavorable Sales Volume Variance in Operating Income Suggests A(n)

question 3

Multiple Choice

An unfavorable sales volume variance in operating income 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:

Disposable Income

Households' spendable and savable funds following income tax deductions.

Autonomous C

Spending by consumers that does not depend on current income levels, such as basic needs or contractual obligations.

Disposable Income

The budget households have for saving and spending activities after income taxes deductions.

Induced Consumption

Consumer spending that increases as income rises, and decreases when income falls, reflecting a direct relationship between income and consumption.