The sales-volume variance is due to:
A)poor production performance.
B)using a different selling price from that budgeted.
C)inaccurate forecasting of units sold.
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

The sales-volume variance is caused by inaccurate forecasting of units sold, which means that the actual sales volume differed from what was budgeted. Poor production performance and using a different selling price from that budgeted would result in other variances (such as the efficiency variance and the price variance, respectively), but not the sales-volume variance.

The Sales-Volume Variance Is Due To