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

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Definitions:

Physical Capital

Consists of tangible, man-made objects that a business uses to produce goods or services, such as buildings, machinery, and equipment.

Short Run

A period in economics where at least one factor of production is fixed, limiting the ability of the economy or firm to adjust to changes in demand or supply.

Productive

Relating to or involving the creation of goods or services that satisfy human wants; the efficiency and effectiveness in producing outputs from inputs.

Constant Returns To Scale

A condition where increasing all inputs by any proportion results in output increasing by that same proportion, indicating that size does not affect productivity.