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:

Credible Threat

A statement or action that is believable and carries the weight of possible enforcement, often used in negotiations or strategic situations.

Economies of Scale

The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

The phenomenon where a firm's per unit costs increase as it increases production, typically due to inefficiencies.

Learning-By-Doing

Acquiring skills and efficiency in a task through direct experience or practice, often leading to reduced costs and improved performance over time.