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:

Knowledge Of Falsity

Awareness that a particular statement or representation is false, which can be relevant in cases of fraud or deceit.

Intention To Deceive

refers to the deliberate act of misleading or concealing the truth in order to gain an unfair advantage over someone else.

Restatement

A clarification or modification made to an existing statement or document to correct or update it.

Materially Different Meanings

Phrases or terms used in legal or contractual contexts that significantly alter the interpretation or understanding from their common usage.