Sales volume variance is the difference between the:
A)actual amounts and the flexible budget due to differences in price and costs.
B)expected results in the flexible budget for the actual units sold and the static budget.
C)static budget and actual amounts due to differences in selling price.
D)flexible budget and static budget due to differences in fixed costs.

Question

Quizplus · Accepted Answer

Sales volume variance is the difference between the expected results in the flexible budget for the actual units sold and the static budget. It measures the impact of actual sales volume on profitability, assuming everything else remains constant. A positive sales volume variance indicates that the actual sales volume exceeded the expected sales volume, while a negative variance indicates lower-than-expected sales volume. Option A refers to price and cost variances, option C refers to sales price variance, and option D refers to fixed cost variances, which are all different from sales volume variance.

Sales Volume Variance Is the Difference Between The