Which of the Following Is Not an Element of a Product's

question 24

Multiple Choice

Which of the following is not an element of a product's sales quantity variance?

• A) Budgeted sales mix ratio for the product.
• B) Budgeted contribution margin per unit of the product.
• C) Difference in total units of all products between the actual units sold and the units budgeted to be sold.
• D) Actual sales mix ratio.

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Definitions:

Product Costs

Costs that are incurred to acquire or manufacture a product, including direct materials, direct labor, and manufacturing overhead.

Depreciation

The reduction in the value of an asset over time due to wear and tear, usage, or obsolescence, this concept is often used in accounting to allocate the cost of an asset over its useful life.

Factory Equipment

The machinery and tools used in the manufacturing process within a factory setting.

Plant Manager

A person responsible for overseeing all daily operations of a manufacturing facility, ensuring efficiency, and meeting production targets.