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 products than that specified in the static budget.
D)All of these ans choices are correct.

Question

Quizplus · Accepted Answer

The sales volume variance reflects the difference between the actual quantity of products sold and the quantity of products specified in the static budget. This means that the company sold a different volume of products than what was planned in the budget. Options A and B are not correct because the variance does not reflect efficiency or effectiveness in achieving strategic goals, but rather the difference between planned and actual sales. Option D is not entirely correct as only option C is a valid explanation for the sales volume variance.

The Sales Volume Variance Reflects