Match the variance to the correct definition.
-Sales volume variance
A)measures how well the business uses its materials or human resources
B)the difference between the expected results in the flexible budget for the actual units sold and the static budget
C)the difference between actual results and expected results in the flexible budget for the actual units sold
D)measures how well the business keeps unit material and labor costs within standards
E)the difference between actual results and the expected results in the static budget

Question

Quizplus · Accepted Answer

Sales volume variance is the difference between what was expected to be sold according to the static budget and what the flexible budget would have expected, given the actual number of units sold. It highlights how changes in the volume of sales affect profits.

Match the Variance to the Correct Definition