If the Sales Mix Changes

question 67

Multiple Choice

If the sales mix changes:

• A) The fixed costs will change
• B) The change in mix affects the contribution margin ratio
• C) Nothing else changes
• D) Each product's variable cost will change

---

Definitions:

Ending Inventory

The total value of all inventory items that a company has in stock at the end of an accounting period.

Beginning Inventory

The value of inventory on hand at the start of an accounting period, consisting of raw materials, work-in-process, and finished goods.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

Raw Materials Production Needs

The essentials and quantities of raw materials required to fulfill the production schedule for goods.