A Favorable Sales Volume Variance in Variable Costs Suggests A(n)________

question 38

Multiple Choice

A favorable sales volume variance in variable costs 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 cost per unit
• D) decrease in fixed costs

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Definitions:

Wage Increase

An upward adjustment in the amount of money paid to an employee for their labor.

Workers' Union

An organization that represents the collective interests of employees, negotiating wages, work hours, and working conditions with employers.

Relative Price

The price of one good or service compared to another, usually considered in terms of opportunity cost.

Demand for Labor

The aggregate number of employees that employers intend and can employ at a particular rate of wages over a certain interval.