The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below. Which of the following statements would be a correct factor to explain the sales volume variance for operating income?

Question

The Alaska Fish Company completed the flexible budget analysis for the second quarter, which is given below.  Which of the following statements would be a correct factor to explain the sales volume variance for operating income?

Quizplus · Accepted Answer

The sales volume variance for operating income is solely affected by the level of sales volume. Therefore, an increase in sales volume would result in a favorable variance, while a decrease in sales volume would result in an unfavorable variance. Changes in sales price per unit, variable cost per unit, and fixed costs would affect other variances, but not the sales volume variance.

The Alaska Fish Company Completed the Flexible Budget Analysis for the Second