The sales volume variance does not help managers understand
A)the effects of price changes on actual results.
B)operational efficiency on actual results.
C)either the effects of price changes on actual results or the operational efficiency on actual results.
D)the impact of greater actual sales over budgeted sales.

Question

Quizplus · Accepted Answer

The sales volume variance only shows the difference between actual sales volume and budgeted sales volume. It does not differentiate between the effects of price changes or operational efficiency on actual results. Therefore, it cannot help managers understand either of these factors individually. Additionally, the variance does not provide insight into the impact of greater actual sales over budgeted sales.

The Sales Volume Variance Does Not Help Managers Understand