(Units sold − budgeted sales units) × (Budgeted contribution margin per unit) equals:
A) Sales-mix variance.
B) Market size variance.
C) Sales quantity variance.
D) Sales volume variance.
E) Flexible budget variance.

Question

Quizplus · Accepted Answer

This equation represents the calculation for the sales volume variance, which measures how much of the total variance in revenue is due to differences in the number of units sold compared to the budgeted amount.

(Units Sold − Budgeted Sales Units) × (Budgeted Contribution Margin