The Revenue Budget Variance Cannot Be Caused by Changes in Sales

question 131

True/False

The revenue budget variance cannot be caused by changes in sales mix as total sales is unaffected by sales mix.

---

Definitions:

Implicit Costs

Represent the opportunity costs of using resources that a firm already owns for production, instead of allocating them for other purposes.

Economic Profits

The margin between total earnings and all incurred costs, accounting for both obvious and concealed expenses.

Accounting Profits

Net income reported on a company's financial statements, calculated as total revenues minus explicit costs, excluding opportunity costs.

Economic Profits

The surplus remaining after total costs are subtracted from total revenues, taking into account both explicit and implicit costs.