An favorable production-volume variance occurs when ________.
A) the denominator level exceeds production
B) production exceeds the denominator level
C) production exceeds unit sales
D) unit sales exceed production

Question

Quizplus · Accepted Answer

A favorable production-volume variance occurs when production exceeds the denominator level, i.e., more units are produced than anticipated based on the denominator level. This leads to a lower cost per unit, resulting in a favorable variance.

An Favorable Production-Volume Variance Occurs When ________