Which of the Following Statements Is(are)true Regarding the Sales Activity

question 107

Multiple Choice

Which of the following statements is(are) true regarding the sales activity variance? (A) The sales activity variance is the actual selling price per unit times the difference between the budgeted units and actual units.(B) If the sales activity variance for sales revenue is unfavorable,then the contribution margin sales activity variance will be unfavorable.

• A) Only A is true.
• B) Only B is true.
• C) Neither A and B is true.
• D) Both A and B are true.

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Definitions:

Cross Price Elasticity

A measure of how the demand for one product changes in response to a change in the price of another product, indicating substitutes or complements.

Substitutes

Goods or services that can replace each other in use, affecting demand when their prices or other attributes change.

Demand

The quantity of a product or service consumers are willing and able to purchase at various prices.

Tax Revenue

The income that is gained by governments through taxation.