A Sales Volume Variance for Units Is the Difference Between

question 88

Multiple Choice

A sales volume variance for units is the difference between the:

• A)number of units actually sold and number of units expected to be sold according to the static budget.
• B)number of units in the flexible budget at two levels of activity.
• C)actual units sold and the number of units in the flexible budget.
• D)actual sales volume and normal sales volume.

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Definitions:

Profit-maximizing Level

The output level at which a business achieves the highest possible profit, found where marginal cost equals marginal revenue.

Total Costs

The complete amount of expenses incurred by a business, combining both fixed and variable costs associated with production.

Inputs Prices

Prices of goods or services that are used in the production of other goods or services.

Profit-maximizing

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.