The Sales Quantity Variance of a Firm Arises When The

question 56

Multiple Choice

The sales quantity variance of a firm arises when the:

• A) Mixes of individual products sold differ from the budgeted mixes to be sold.
• B) Total units of all products sold differ from the budgeted total units to be sold.
• C) Total units of a product sold differ from the budgeted units of the product to be sold.
• D) Number of products sold differs from the budgeted number of products to be sold.
• E) Actual market size differs from the budgeted market size.

---

Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Short-term Finance

Financing options intended for a period typically less than one year, used to address immediate operational needs.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Operating Cycle

The time period between the purchase of inventory and the collection of accounts receivable from the sale of that inventory.