A Favorable Sales Volume Variance in Sales Revenue Suggests A(n)

question 13

Multiple Choice

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

• A)increase in price.
• B)increase in number of actual units sold when compared to the expected number of units sold.
• C)increase in variable expenses per unit.
• D)decrease in fixed costs.

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Definitions:

Net Sales

The revenue generated from goods or services sold by a business, minus returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

The mean value of all assets owned by a company over a specific period, used to evaluate financial health and operational efficiency.

Current Ratio

A financial metric used to assess a company's ability to pay off its short-term liabilities with its short-term assets.

Year-End Balance Sheet

A financial statement that shows a company's assets, liabilities, and equity at the last day of the fiscal year, providing a snapshot of its financial condition.