Which of the following statements is(are)true regarding the sales activity variance? (A)The sales activity variance is the actual selling price per unit times the difference between the budgeted units and actual units.(B)If the sales activity variance for sales revenue is unfavorable,then the contribution margin sales activity variance will be unfavorable.
A) Only A is true.
B) Only B is true.
C) Neither A and B is true.
D) Both A and B are true.

Question

Quizplus · Accepted Answer

The sales activity variance is calculated based on the difference in volume, not price. If sales revenue variance is unfavorable, contribution margin variance will also be unfavorable due to lower sales volume.

Which of the Following Statements Is(are)true Regarding the Sales Activity