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

---

Definitions:

Uncollectible Accounts Receivables

Accounts receivable that a company does not expect to collect and must write off as a loss because the debtor is unable to pay the owed amount.

Merchandise

Goods that are bought and sold in business; the commodities or items that a business trades in.

Journal Entry

A record in the books of accounts that represents a single financial transaction, documented in chronological order and showing the debits and credits for each transaction.

Terms N/30

Payment terms indicating that an invoice must be paid within 30 days of the invoice date.