A Sales Mix Variance

question 47

Multiple Choice

A sales mix variance:

• A)If unfavorable, indicates that a greater percentage of products with higher contribution margins are being sold than were budgeted.
• B)Indicates which products are having a negative impact on profits.
• C)Reports the effect on profits due to a change in the sales mix from the master budget.
• D)Reports the effect on profits due to an overall change in sales quantity.

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Definitions:

Positive Entry

The introduction of new firms into a market, increasing competition and potentially leading to innovation and lower prices for consumers.

Current Account Entry

An item in the balance of payments that includes all imports and exports of goods and services, along with income received from or paid to foreign countries.

Current Account

A component of a country's balance of payments that encompasses the trade balance, net primary income, and secondary income.

Net Investment Income

The income generated from investments after deducting all related expenses, such as interest payments, fees, and taxes.