The ________ variance is the difference between the number of units actually sold and the volume of sales originally planned for.

Question

Quizplus · Accepted Answer

The given scenario is describing sales volume variance, which is the difference between the actual sales volume and the planned sales volume. Option A is incorrect as it refers to a different type of variance related to material costs. Option B refers to a budget that can adjust to changes in volume or activity, but it is not directly related to the given scenario. Option D refers to labour efficiency variance, which relates to the difference between the actual amount of labour used and the planned amount.

The ________ Variance Is the Difference Between the Number of Units