Using the Abbreviations Listed Below, What Is the Formula for the Industry

question 118

Multiple Choice

Using the abbreviations listed below, what is the formula for the industry volume variance?
AMS = actual market share
BMS = budgeted market share
BCM = budgeted contribution margin per unit
ACM = actual contribution margin per unit
ATM = actual total market
BTM = budgeted total market

• A) (ATM − BTM) (BMS) (ACM)
• B) (ATM - BTM) (BMS) (BCM)
• C) (AMS - BMS) (ATM) (ACM)
• D) (AMS - BMS) (ATM) (BCM)

---

Definitions:

Negotiable

Capable of being discussed or modified in terms of the conditions of an agreement or contract.

Order Paper

A negotiable instrument or financial document that is payable to a specific individual or the order of a specific person.

Blank Indorsement

An endorsement on a financial instrument, such as a check, that specifies no endorsee, making it payable to the bearer.

Trust

A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.