If a particular customer requires an unusually large amount of attention from your company's sales staff, it will be brought to your management's attention by:
A) An unfavorable purchase volume variance.
B) An unfavorable market share variance.
C) An unfavorable price variance.
D) An unfavorable cost spending variance.

Question

Quizplus · Accepted Answer

An unfavorable cost spending variance occurs when the actual costs exceed the budgeted or standard costs. If a customer requires an unusually large amount of attention, this would likely increase the sales staff's time and effort spent on this customer, leading to higher than expected costs. This situation would be reflected in an unfavorable cost spending variance, alerting management to the increased resource allocation.

If a Particular Customer Requires an Unusually Large Amount of Attention