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:

Normal Model

A statistical model, also known as the normal distribution or Gaussian distribution, characterized by a bell-shaped curve symmetrical about its mean.

Jelly Beans

Small, bean-shaped sugar candies with various flavors and colors.

Proportion

A part, share, or number considered in comparative relation to a whole, often expressed as a fraction or percentage.

Fair 6-sided Dice

A cube-shaped object with each of its six faces showing a different number of dots from 1 to 6, used in games of chance to ensure an equal probability of landing on any face when thrown.