The Sales Quantity Variance Would Be Favorable When a Company

question 112

Multiple Choice

The sales quantity variance would be favorable when a company sells:

• A) relatively fewer of the products bearing contribution margins lower than average.
• B) relatively more of the products bearing contribution margins higher than average.
• C) more total units than budgeted, holding the sales mix constant.
• D) less total units than budgeted, holding the sales mix constant.

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Definitions:

Contra-

A prefix meaning against, opposite or contrasting.

Endo-

A prefix meaning within or inside, used in medical and scientific terms to denote inner structures or conditions.

Inter-

A prefix meaning 'between' or 'among'.

Ex-

A prefix often denoting out of, from, or not having something.