A sales volume variance will occur when the number of units actually sold differs from the volume originally planned for in the master budget.

Question

Quizplus · Accepted Answer

A sales volume variance measures the difference between the actual number of units sold and the number of units that were expected to be sold based on the master budget. This variance can have a significant impact on a company's profitability, as it can affect not only revenue but also variable costs such as materials and labor. Therefore, it is important for companies to monitor and analyze their sales volume variances to identify any potential issues and take corrective actions as needed.

A Sales Volume Variance Will Occur When the Number of Units