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:

Depreciation Expense

This is an accounting method used to allocate the cost of a tangible asset over its useful life.

Salaries and Wages Expense

The total cost incurred by an employer for employee compensation, including both salaries and hourly wages.

Temporary Account

An account that is closed at the end of each accounting period and its balances transferred to permanent accounts; examples include revenues, expenses, and dividends accounts.

Correct Entry

An accurate recording of a transaction in the books of accounts, adhering to accounting principles and conventions.