Favorable sales volume variance for revenues is caused by which of the following?
A)Actual net income for the subunit is greater than budgeted net income.
B)Actual sales in dollars are greater than the master budget sales in dollars.
C)The flexible budget sales in dollars are greater than the static budget sales in dollars.
D)Actual sales in dollars are less than the static budget sales in dollars.

Question

Quizplus · Accepted Answer

A favorable sales volume variance occurs when the flexible budget sales exceed the static budget sales, indicating that more units were sold than originally planned.

Favorable Sales Volume Variance for Revenues Is Caused by Which