A favorable sales-quantity variance would most likely be caused by:
A)a new competitor providing better service in the high-margin product sector
B)a competitor having distribution problems with high-margin products
C)the company offering low-margin products at a higher price
D)the company experiencing quality-control problems that get negative media coverage of low-margin products

Question

Quizplus · Accepted Answer

If a competitor is having distribution problems with high-margin products, it could result in a favorable sales-quantity variance for the company. This would mean the company may sell more of their high-margin products due to lack of availability from the competitor, resulting in an increase in sales quantity and revenue for the company. The other options listed would most likely result in a negative sales-quantity variance.

A Favorable Sales-Quantity Variance Would Most Likely Be Caused By