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:

Estimated σ

Approximation of the standard deviation (σ), a measure of the dispersion or variation of a distribution.

Normal Probability Distribution

A bell-shaped probability distribution, also known as Gaussian distribution, that is fully defined by its mean and standard deviation.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.

Np

A term related to statistics, often referring to the expected number of successes in a Binomial distribution.