The Sales Volume Variance Is the Difference Between The

question 1

Multiple Choice

The sales volume variance is the difference between the:

• A) static budget (based on actual volume) and the flexible budget (based on planned volume).
• B) static budget (based on planned volume) and the flexible budget (based on actual volume).
• C) static budget (based on planned volume) and actual revenue or cost.
• D) flexible budget (based on actual volume) and actual revenue or cost.

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Definitions:

Yield

The income return on an investment, such as the interest or dividends received, often expressed as an annual percentage based on the investment’s cost, current market value, or face value.

CAPM Approach

The Capital Asset Pricing Model, a formula used to determine the expected return on investment (ROI) by correlating the risk and expected return.

Cost of Equity

The return that shareholders require or expect to earn on their investment in the company, considered as the company's cost of retaining and using equity capital.

CGT

Capital Gains Tax, which is a tax on the profit realized on the sale of a non-inventory asset.