When the Mix of Products Sold Shifts Toward the High

question 59

Multiple Choice

When the mix of products sold shifts toward the high contribution margin product, the total:

• A) Sales mix variance is favorable.
• B) Sales volume variance is favorable.
• C) Market mix variance is favorable.
• D) Sales mix variance is unfavorable.
• E) Sales price variance is favorable.

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Definitions:

Acceptance

Acceptance in business refers to the agreement to the terms of a contract or an acknowledgment that a product or service meets the required standards.

Cash Receipts

Money received by a business during a given period, accounting for its cash inflow.

Cash Payments

Transactions that involve the outflow of cash from a company to settle dues such as expenses, debts, or purchases.

Debit Balance

A situation where the sum of debits in an account exceeds the sum of credits, often indicating the amount owed or expenses.