Which of the Following Statements Is Incorrect?
A) the Sales

question 99

Multiple Choice

$\begin{array}{lcc}\text { Item to Classify } &\text { Standard } &\text {Actual }\\\text { Sales volume } & 100,000 \text { units } &96,000 \text { units }\\\text { Sales price } & \$ 4 \text { per unit }&\$3.90 \text { per unit } \\\text { Material usage } & 40,000 \text { gallons } &42,000 \text { gallons }\\ \text { Labor price } & 12.50\text { per hour }&12.45 \text { per hour }\end{array}$ Which of the following statements is incorrect?

• A) The sales volume variance is unfavorable.
• B) The materials usage variance is unfavorable.
• C) The sales price variance is favorable.
• D) The labor price variance is favorable.

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Definitions:

Channel Intermediaries

Organizations or individuals that act as middlemen in the distribution process, helping to move products from the manufacturer to the consumer.

Direct Channel

A method of distribution where a company sells its products or services directly to consumers without the use of intermediaries.

Producers

Entities or individuals that create, manufacture, or supply goods and services for consumption by consumers or other businesses.

End Users

The final consumers or users of a product or service, in contrast to those involved in its development, production, or distribution.