When the actual volume is less than the expected volume,the production volume variance is ________ because the usage of the facilities is ________.
A) favorable; higher than expected
B) unfavorable; lower than expected
C) favorable; lower than expected
D) unfavorable; higher than expected

Question

Quizplus · Accepted Answer

When the actual volume is less than expected, it means the facilities have been underutilized, resulting in lower production output. Therefore, the production volume variance is considered unfavorable in this situation.

When the Actual Volume Is Less Than the Expected Volume,the