Sales Mix

question 71

Multiple Choice

Sales mix

• A)is a measure of the percentage increase in sales from period to period.
• B)is not important to managers when different products have substantially different contribution margins.
• C)is a measure of the percentage increase in sales by product from period to period.
• D)is the relative proportion in which each product is sold when a company sells more than one product.

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Definitions:

Long-Term Investment

Long-term investments are financial assets that a company intends to hold for more than one accounting year, such as stocks, bonds, or real estate.

Discontinued Operation

A component of a business that has been disposed of or is held for sale and represents a separate major line of business or geographical area of operations, segregated in financial reporting.

Management's Discussion

A section in a company's annual report where senior executives provide their perspective on the financial health, results, and future outlook of the company.

Journal Entries

Records of financial transactions in the accounting system that are entered in the general journal.