The Sales Volume Variance Was A)$16,000 Favorable

question 98

Multiple Choice

The sales volume variance was: $\begin{array}{ccc}\text { Item to Classify }&\text {Standard}&\text { Actual }\\\text { Sales volume } & 100.000 \text { units } & 96.000 \text { units } \\\text { Sales price } & \$ 4 \text { per unit } & \$ 3.90 \text { per unit } \\\text { Materials usage } & 40,000 \text { gallons } & 42.000 \text { gallons } \\\text { Labor price } & 12.50 \text { per Hour } & 12.45 \text { per hour }\end{array}$

• A)$16,000 favorable.
• B)$16,000 unfavorable.
• C)$25,000 unfavorable.
• D)$25,000 favorable.

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Definitions:

Centralized Organizational Culture

A type of corporate culture where decision-making and authority are concentrated at the top levels of the organization, leading to a more uniform policy and strategy throughout.

Crucial Organizational Decisions

Significant decisions that affect the direction, strategy, and operations of an organization.

Narrow Distribution

A strategy of distributing products or services to a limited number of outlets or specific targeted demographic.

Cultural Construction

The process by which society collectively shapes values, beliefs, norms, and practices through shared symbols and meanings.