The sales-volume variance equals:
A) (actual sales volume - budgeted sales volume) * actual sales price.
B) (actual sales volume - budgeted sales volume) * actual contribution margin.
C) (actual sales volume - budgeted sales volume) *budgeted sales price.
D) (actual sales price - budgeted sales price) *budgeted sales volume.
E) (actual sales price - budgeted sales price)*fixed-overhead volume variance.

Question

Quizplus · Accepted Answer

The sales-volume variance is calculated by taking the difference between the actual sales volume and the budgeted sales volume, and then multiplying that difference by the budgeted sales price. This measures the impact of the difference in the quantity sold from the budgeted quantity, valued at the budgeted price per unit.

The Sales-Volume Variance Equals