The Sales Volume Variance Is the Difference Between the ________

question 173

Multiple Choice

The sales volume variance is the difference between the ________.

• A) actual results and the expected results in the flexible budget for the actual units sold
• B) expected results in the flexible budget for the actual units sold and the static budget
• C) static budget and actual amounts due to differences in sales price
• D) flexible budget and static budget due to differences in fixed costs

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Definitions:

Original Capital

Original capital refers to the initial amount of money invested in a business or project, used to start operations and acquire necessary resources.

Interest

The cost of borrowing money, paid by the borrower to the lender, typically expressed as an annual percentage of the loan amount.

Capital Account

An account on the balance sheet representing the owners' or shareholders' equity, including funds contributed by investors and retained earnings.

Capital Account Balance

The net result of public and private international investments flowing in and out of a country, representing changes in national ownership of assets.