The sales volume variance is influenced most heavily by actions of
A)The budget committee.
B)The operations personnel.
C)The sales and marketing personnel.
D)The executives of the company.

Question

Quizplus · Accepted Answer

The sales volume variance is a measure of the difference between the actual and budgeted sales volume. This variance is most heavily influenced by the sales and marketing personnel, as they are responsible for generating sales and promoting the company's products or services. The budget committee may set sales targets, but it is the sales and marketing personnel who are responsible for achieving those targets. The operations personnel may contribute to the variance through their production activities, but it is ultimately the sales volume that drives the variance. The executives of the company may have some influence, but their impact is likely to be more indirect than that of the sales and marketing personnel.

The Sales Volume Variance Is Influenced Most Heavily by Actions