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A flexible budget performance report indicates a sales variance of $200 unfavorable. The variance was likely caused by:Multiple choice question.selling units for less than the budgeted priceselling more units than budgetedselling units for more than the budgeted price

Question

A flexible budget performance report indicates a sales variance of $200 unfavorable. The variance was likely caused by:Multiple choice question.selling units for less than the budgeted priceselling more units than budgetedselling units for more than the budgeted price

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Solution

The sales variance of 200unfavorablewaslikelycausedbysellingunitsforlessthanthebudgetedprice.Thisisbecauseanunfavorablevarianceindicatesthattheactualresultswereworsethanthebudgetedresults.Inthiscase,itmeansthattheactualsaleswere200 unfavorable was likely caused by selling units for less than the budgeted price. This is because an unfavorable variance indicates that the actual results were worse than the budgeted results. In this case, it means that the actual sales were 200 less than what was budgeted. This could happen if the units were sold for less than the budgeted price, resulting in lower total sales.

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Similar Questions

If actual sales revenue was $65 350 for the month, whereas budgeted sales revenue was $68 500, the sales variance is:Group of answer choicesnot able to be determined because cost of sales figures are not given.an unfavourable variance of $3150.a favourable variance of $3150.zero.

The fixed budget indicates sales of $50,000. Actual sales were $55,000. The variance is:

Fill in the Blank QuestionFill in the blank question.Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 and budgeted price per unit is $15.75. The sales price variance is $.

The flexible budget performance report directs management's attention to areas where: (Check all that apply.)Multiple select question.small flexible variances exist.small quantity variances exist.revenues differ substantially from budgeted amounts.costs differ substantially from budgeted amounts.

Multiple Choice QuestionThe fixed budget indicates sales of $50,000. Actual sales were $55,000. The variance is:Multiple choice question.$5,000 unfavorable$55,000 favorable$55,000 unfavorable$5,000 favorable

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