The sales volume variance reflects
A)how efficiently the company operated in producing a given level of sales.
B)how effectively the company reached its strategic goals.
C)a different volume of activity than that specified in the static budget.
D)the amount of each resource actually used in operations.

Question

Quizplus · Accepted Answer

The sales volume variance reflects the difference between the actual number of units sold and the number of units assumed in the static budget. It measures the impact of changes in sales volume on the company's profitability. It does not indicate how efficiently or effectively the company operated, nor does it reflect the amount of resources actually used.

The Sales Volume Variance Reflects