Sales volume variances can have significant implications for strategic management.An unfavorable sales volume variance may indicate that:
A)The industry is in decline and the products are obsolete.
B)The company needs a new competitive strategy.
C)Product mix changes are favorable but quantity variances are unfavorable.
D)Labor productivity needs to be addressed.

Question

Quizplus · Accepted Answer

An unfavorable sales volume variance suggests that the company's current strategy may not be effective in the market, indicating a need for a new competitive strategy to better meet customer demands and improve sales.

Sales Volume Variances Can Have Significant Implications for Strategic Management