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3) Which of the following is a component of *sales-volume variance*?

A) Net-income volume variance
B) Operating-income volume variance
C) Taxable-income volume variance
D) Budgeted revenue variance

1 Answer

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Final answer:

The component of sales-volume variance in the question is Operating-income volume variance, which measures the impact of changes in sales volume on operating income.

Step-by-step explanation:

The component of sales-volume variance that is being asked about in this question is Operating-income volume variance. Sales-volume variance is the difference between the actual units sold and the budgeted units sold, multiplied by the standard profit per unit. The aim of calculating sales-volume variance is to assess the impact of the difference in sales volume on the operating income. Therefore, the correct answer is B) Operating-income volume variance. It is a measure used to determine how the change in the volume of sales has affected the operating income compared to what was budgeted.

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