An unfavorable production volume variance ________ a company's operating income.
A) increases
B) decreases
C) does not affect
D) it depends on the size of the variance

Question

Quizplus · Accepted Answer

An unfavorable production volume variance indicates that a company produced less than expected, leading to higher fixed costs per unit and thus decreasing operating income.

An Unfavorable Production Volume Variance ________ a Company's Operating Income