Net sales volume variance will not be favorable:
A) When actual units sold is greater than budgeted sales volume
B) When actual units sold is less than budgeted sales volume
C) When the sales volume variance is favorable
D) Under any of the above conditions

Question

Quizplus · Accepted Answer

The net sales volume variance is favorable or unfavorable depending on the relationship of actual volume to budgeted volume. If actual is less than budgeted, the variance is unfavorable; if actual is more than budgeted, the variance is favorable.

Net Sales Volume Variance Will Not Be Favorable