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:

Unit Variable Cost

The cost associated with producing an additional unit of product, which includes materials, labor, and any other expenses that increase with each unit produced.

Monthly Sales

The total revenue generated from sales of goods or services within a month.

Net Operating Income

The total profit of a company after operating expenses are deducted but before taxes and interest are subtracted.

Break-even Point

The level of sales at which total costs equal total revenue, resulting in no net profit or loss.