Answer (D) is correct . If a firm’s sales differ from the amount budgeted, the difference could be attributable either to the sales price variance or the sales volume variance. The sales volume variance is the change in contribution margin caused by the difference between the actual and budgeted sales volumes.
Answer (A) is incorrect because A static budget variance is the difference between actual costs or revenues and those budgeted on a static budget.
Answer (B) is incorrect because A master budget increment is an increase in a budgeted figure on the firm’s master budget.
Answer (C) is incorrect because The sales mix variance is caused when a company’s actual sales mix is different from the budgeted sales mix.
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