A favorable sales volume variance in sales revenue suggests a(n)________.
A) increase in actual sales price per unit as compared to budgeted sales price
B) increase in number of actual units sold when compared to the expected number of units sold
C) increase in actual variable cost per unit as compared to expected variable cost per unit
D) decrease in actual fixed costs

Question

Quizplus · Accepted Answer

A favorable sales volume variance means that the actual number of units sold exceeded the expected number of units sold, leading to higher sales revenue. This has nothing to do with changes in the actual sales price or variable costs per unit, or with fixed costs.

A Favorable Sales Volume Variance in Sales Revenue Suggests A(n)________