A company is analyzing its month-end results by comparing it to both static and flexible budgets.During the 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

The difference between the actual sales volume and the expected sales volume as per the static budget results in an unfavorable sales volume variance for sales revenue. This variance directly affects the sales revenue, as it measures the impact of the actual sales volume being lower than expected.

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