Sales Variance Analysis Is Useful For

question 165

Multiple Choice

Sales variance analysis is useful for:

• A) Planning purposes only.
• B) Budgeting purposes only.
• C) Control purposes only.
• D) Planning and control purposes.
• E) Planning and budgeting purposes.

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Definitions:

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per dollar of revenue generated, indicating the intensity of the capital used in the business operations.

Times Interest Earned

A financial metric assessing a company's ability to meet its interest obligations from its earnings before interest and taxes.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, represented as a financial charge or fee.