The Sum of the Change in Units for Each Product

question 14

Multiple Choice

The sum of the change in units for each product multiplied by the difference between the budgeted contribution margin and the budgeted average unit contribution margin is called the:

• A)market share variance
• B)sales mix variance
• C)overall sales variance
• D)market size variance

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Definitions:

Future Value

The value of an investment or sum at a specific future date, accounting for factors like interest rates or dividends.

Relevant Interest Rate

The appropriate rate used for discounting future cash flows or evaluating investment opportunities, reflecting the cost of capital.

Opportunity Cost

The cost of forfeiting the next best alternative when making a decision or investment.

Next Best Use

An economic concept referring to the most profitable or valuable alternative use of a resource if it is not used in its current manner.