A company is analyzing its month-end results by comparing it to both static and flexible budgets.During the previous month,the actual sales volume was lower than the expected sales volume as per the static budget.This difference results in an unfavorable ________.
A) flexible budget variance for variable costs
B) sales volume variance for variable costs
C) flexible budget variance for sales revenue
D) sales volume variance for sales revenue

Question

Quizplus · Accepted Answer

Sales volume variance for sales revenue is unfavorable when the actual sales volume is lower than the expected sales volume as per the static budget, because it directly impacts the revenue expected from sales.

A Company Is Analyzing Its Month-End Results by Comparing It