An unfavorable sales volume variance in operating income suggests a(n)________.
A) increase in number of actual units sold when compared to the expected number of units sold
B) decrease in number of actual units sold when compared to the expected number of units sold
C) increase in variable cost per unit
D) decrease in fixed costs

Question

Quizplus · Accepted Answer

An unfavorable sales volume variance implies that the actual number of units sold is less than the expected number of units sold. This could be due to factors such as decreased demand, reduced marketing efforts, or increased competition. It has nothing to do with changes in variable costs per unit or fixed costs.

An Unfavorable Sales Volume Variance in Operating Income Suggests A(n)________