The sales volume variance helps managers understand
A)the effects of price changes on actual results.
B)flexible budget variances.
C)why the company's actual total revenue differs from the amount budgeted.
D)the impact of greater actual sales over budgeted sales due to selling more units.

Question

Quizplus · Accepted Answer

The sales volume variance measures the impact of actual sales volume differing from budgeted sales volume, resulting in a difference in total revenue. Therefore, it helps managers understand the impact of greater actual sales over budgeted sales due to selling more units.

The Sales Volume Variance Helps Managers Understand