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

question 212

Multiple Choice

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

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

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Definitions:

Natural Fit

A situation or condition where an individual or object seamlessly matches or integrates with a particular environment or role without force.

Goal-Sharing

A strategy where organizational goals are communicated to employees, ensuring that everyone understands their role in achieving these objectives, often linked to performance and incentives.

Gain-Sharing Plans

Incentive plans that reward employees for contributing to the company's efficiency and productivity improvements by sharing the resulting financial gains.

Profit-Sharing Plans

An incentive plan in which employees receive a portion of the company's profits, typically allocated based on the company's earnings over a set period.