The sales quantity variance of a firm arises when the:
A) Mixes of individual products sold differ from the budgeted mixes to be sold.
B) Total units of all products sold differ from the budgeted total units to be sold.
C) Total units of a product sold differ from the budgeted units of the product to be sold.
D) Number of products sold differs from the budgeted number of products to be sold.
E) Actual market size differs from the budgeted market size.

Question

Quizplus · Accepted Answer

The sales quantity variance arises when the total units of all products sold differ from the budgeted total units to be sold. This means that the actual sales quantity is either higher or lower than the budgeted sales quantity, resulting in a variance. Factors that can cause this variance include changes in demand, competition, pricing, and marketing strategies.

The Sales Quantity Variance of a Firm Arises When The