Indicate Whether Each of the Following Statements Is True or False

question 17

Short Answer

Indicate whether each of the following statements is true or false.
The amount of a sales volume variance is the difference between the static budget and a flexible budget based on actual volume.______
The sales volume variance measures managers' effectiveness in achieving the planned sales price for the company's products.______
Marketing managers are usually held responsible for the sales volume variance.______
If the planned sales volume was 25,000 units and the actual sales volume was 25,500 units,the sales volume variance was favorable.______
For marketing managers,"making the numbers" refers to reaching the budgeted sales volume.______

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Definitions:

Daily Demand Rate

The average quantity of a product or service that is requested by customers over the course of a single day.

Production Rate

The speed at which goods are manufactured or produced within a given time period.

Average Inventory

The mean value of inventory held over a certain period of time, indicating the level of stock being maintained.

Single-Period Model

is a decision-making tool used in inventory management, assuming demand is uncertain and there is only one opportunity to order stock for a particular period.