Which of the following is the result of actual production being less than expected production?
A)There is an unfavorable spending variance.
B)There is a favorable spending variance.
C)There is an unfavorable volume variance.
D)There is a favorable volume variance.

Question

Quizplus · Accepted Answer

An unfavorable volume variance occurs when the actual production is less than the expected production. This is due to lower output levels causing higher fixed costs per unit, which leads to a decrease in profitability.

Which of the Following Is the Result of Actual Production