The sales-quantity variance will be favorable when which of the following occurs?
A) sales-volume variance and flexible-budget variance are favorable
B) actual units of all products sold exceed budgeted units of all products sold
C) the actual sales mix shifts towards the more profitable units
D) static-budget variance and flexible-budget variance are favorable

Question

Quizplus · Accepted Answer

The sales-quantity variance measures the difference between the actual quantity sold and the budgeted quantity sold, multiplied by the budgeted selling price. If actual units of all products sold exceed budgeted units of all products sold, meaning higher sales quantity, then the sales-quantity variance will be favorable. The other choices are not directly related to the sales-quantity variance.

The Sales-Quantity Variance Will Be Favorable When Which of the Following