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

question 38

Multiple Choice

An unfavorable sales volume variance in operating income suggests a(n) ________.

• A)increase in number of actual units sold when compared to the expected number of units sold
• B)decrease 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:

Statement Of Comprehensive Income

A financial statement that includes all changes in equity during a period except those resulting from investments by and distributions to shareholders.

Net Working Capital

The difference between a firm's current assets and its current liabilities, indicating the short-term financial health and working capital efficiency of the business.

Total Assets Ratio

A financial metric that compares the value of a company's total assets to another relevant value, often used in financial analysis to gauge company size or efficiency.

Financial Position

A snapshot of a company's assets, liabilities, and equity at a specific point in time, indicating its financial health.