Which of the Following Is True of Mix Variance

question 52

Multiple Choice

Which of the following is true of mix variance?

• A)A mix variance is created whenever actual mix of inputs differs from standard mix.
• B)A mix variance is created whenever actual mix of inputs differs from standard output.
• C)A mix variance is the difference in standard and actual costs of the actual mix of inputs used.
• D)A mix variance is the difference between the actual amount of each input and its standard mix amount.

Analyze the effects of weather conditions on the demand for seasonal products.

Recognize the role of consumer and producer surplus in market transactions.

Assess the impact of changes in production costs on market supply.

Understand the equilibrium dynamics in response to shifts in demand or supply.

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Definitions:

Budgeted Units

An estimate of the quantity of goods or services that an organization plans to produce or sell in a specific period.

Planning Budget

A budget developed for various levels of activity, forecasting revenue and expense figures based on different production or sales volumes.

Net Operating Income

The profit a company generates from its regular business activities, excluding deductions for interest and taxes.

Units

A measurement or quantity of something considered as a standard measure, in business often referring to a single item of a product.