Which one of the following scenarios would not result in a favourable sales volume variance?
A) A higher level of actual sales units compared to budget and a lower actual selling price than budget.
B) A higher level of actual sales units compared to budget and a lower actual contribution per sale than budget.
C) A lower level of actual sales units compared to budget and a higher actual contribution per sale than budget.
D) A higher level of actual sales units compared to budget and a higher actual selling price per unit than budget.

Question

Quizplus · Accepted Answer

A favorable sales volume variance occurs when actual sales units exceed budgeted sales units. Option C describes a scenario where actual sales units are lower than budgeted, which would not result in a favorable sales volume variance.

Which One of the Following Scenarios Would Not Result in a Favourable