The Market Share Variance Is Calculated by

question 9

Multiple Choice

The market share variance is calculated by

• A)[(Actual industry sales in units −Budgeted industry sales in units) × (Budgeted market share percentage)] × (Budgeted average unit contribution margin).
• B)[(Actual market share percentage − Budgeted market share percentage) × Actual industry sales in units] × Budgeted average unit contribution margin.
• C)(Actual quantity sold − Budgeted quantity sold) × Budgeted average unit contribution margin.
• D)(Actual quantity sold − Budgeted quantity sold) × Actual average unit contribution margin.

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Definitions:

Purchasing

The process of acquiring goods, services, or works from an external source, often involving tendering or bidding processes.

Manufacturing

The process of producing goods and products, typically in large quantities, using labor, machinery, and raw materials.

Direct Contribution

Direct contribution refers to the specific, measurable impact that an individual or activity has on the achievement of an organization’s objectives or on the completion of a project.

Line Managers

Managers who have direct responsibility over a specific department or team, involved in day-to-day operations and personnel management.