A Favorable Sales-Mix Variance Arises When the Actual Sales-Mix Percentage

question 94

True/False

A favorable sales-mix variance arises when the actual sales-mix percentage exceeds the budgeted sales-mix percentage.

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Definitions:

Operating

The day-to-day activities or functions necessary for a business or organization to run effectively and efficiently.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which there are many substitutes.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Good

A tangible product or commodity that satisfies human wants or needs.