A Sales Mix Variance

question 47

Multiple Choice

A sales mix variance:

• A)If unfavorable, indicates that a greater percentage of products with higher contribution margins are being sold than were budgeted.
• B)Indicates which products are having a negative impact on profits.
• C)Reports the effect on profits due to a change in the sales mix from the master budget.
• D)Reports the effect on profits due to an overall change in sales quantity.

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Definitions:

Tax Court

A specialized court of law that deals with disputes and issues related to federal tax.

Minimum Contacts

A legal standard determining whether it is appropriate for a court to exercise jurisdiction over an out-of-state defendant based on the defendant's connections with the forum state.

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The legal authority a court has over the persons involved in a lawsuit, based on their connection to the location where the court is situated.

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Behavior that constitutes a tort, which is an act or omission causing harm or injury to another person, leading to civil legal liability.