The Carolina Rubber Products Company Has Completed the Flexible Budget

question 168

Multiple Choice

The Carolina Rubber Products Company has completed the flexible budget analysis for the second quarter,which is as given below.
- Which of the following would be a correct interpretation of the sales volume variance for sales revenues?

• A)increase in price per unit
• B)increase in sales volume
• C)increase in variable expense per unit
• D)increase in fixed costs

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Definitions:

Negative Regression Slope

A negative regression slope indicates an inverse relationship between two variables in statistical modeling, where an increase in one variable results in a decrease in another.

Trend Projection

A time-series forecasting method that fits a trend line to a series of historical data points and then projects the line into the future for forecasts.

Trend Component

A pattern or direction in data that occurs over a long period, indicating a general tendency or movement in a set of data.

Regression Equation

A mathematical formula used to predict the value of a dependent variable based on the values of one or more independent variables, typically used in statistical analysis for prediction.