What Is the Cause of a Favourable Sales Volume Variance

question 15

Multiple Choice

What is the cause of a favourable sales volume variance for revenues?

• A) Actual net income for the subunit is greater than budgeted net income.
• B) Actual sales in dollars are greater than the master budget sales in dollars.
• C) Actual sales in dollars are less than the static budget sales in dollars.
• D) The flexible budget sales in dollars are greater than the static budget sales in dollars.

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Definitions:

Multiple Locations

Multiple locations refer to the presence or operation of entities, activities, or processes in more than one geographical area, highlighting the scope or distribution of certain actions.

Prestige

The respect and admiration that an individual or organization gains based on achievements or quality.

Politician

An individual who is involved in influencing public policy and decision making through election or appointment to a governmental office.

Policy

A course or principle of action adopted or proposed by an organization or individual, typically aimed at achieving specific goals.