Final answer:
The sales-volume variance is sometimes due to an unexpected increase in manufacturing labor time, the unexpected increase in the use of quantities of inputs of raw material, or quality problems leading to customer dissatisfaction.
Step-by-step explanation:
The sales-volume variance can be caused by several factors, including:
- Unexpected increase in manufacturing labor time: If the actual labor time increases beyond what was budgeted, it can lead to a variance in sales volume. For example, if it takes longer to produce a product, it may result in reduced output and lower sales volume.
- Unexpected increase in the use of quantities of inputs of raw material: If the actual raw material consumption increases compared to the budgeted amount, it can lead to a variance in sales volume. This could impact the availability of the finished product for sale.
- Quality problems leading to customer dissatisfaction: If there are issues with the quality of the product, it can result in customer dissatisfaction and a decrease in sales volume. For instance, if customers receive defective or subpar products, they may choose not to make repeat purchases.
It's important for businesses to monitor these variances and address the underlying causes to ensure efficient operations and customer satisfaction.