When a comparison of static and flexible budgets shows an unfavorable sales volume variance,the variable cost volume variances will also be unfavorable.

Question

Quizplus · Accepted Answer

An unfavorable sales volume variance indicates that actual sales were lower than expected, but variable cost volume variances could be favorable if the actual variable costs were lower than expected for the actual level of production or sales volume.

When a Comparison of Static and Flexible Budgets Shows an Unfavorable