Which of the following describes the difference in operating profits from the flexible budget to the master budget results from the difference between budgeted sales volume and actual sales volume?
A)the margin of safety.
B)a profit-volume variance.
C)a sales volume variance.
D)a differential volume variance.

Question

Quizplus · Accepted Answer

A sales volume variance describes the difference in operating profits due to the difference between budgeted sales volume and actual sales volume, as it directly relates to the variance in the number of units sold compared to what was expected.

Which of the Following Describes the Difference in Operating Profits