If a company produces fewer units than expected, there will be
A) a favorable budget variance.
B) an unfavorable spending variance.
C) a favorable volume variance.
D) an unfavorable volume variance.

Question

Quizplus · Accepted Answer

If a company produces fewer units than expected, it means that the actual output is lower than the budgeted output, resulting in a negative volume variance. Therefore, the correct answer is D.

If a Company Produces Fewer Units Than Expected, There Will