The Sales Quantity Variance Is the Difference Between Budgeted Contribution

question 74

True/False

The sales quantity variance is the difference between budgeted contribution margin based on actual units sold of all products at the budgeted mix, and contribution margin in the flexible budget.

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Definitions:

S Corporation

A special designation for a corporation that elects to be taxed as a pass-through entity, avoiding double taxation on the corporate income.

Franchisee

The seller of goods or services under a trade name or trademark in a franchise.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and usually voting rights in the company.

Limited Liability Partnership Law

Legal provisions governing a partnership in which some or all partners have limited liabilities, protecting personal assets from the debts and liabilities of the business.