An Unfavorable Sales Mix Variance Arises for a Product When

question 52

Multiple Choice

An unfavorable sales mix variance arises for a product when the:

• A) Actual units sold are greater than the budgeted units to be sold.
• B) Actual units sold are less than the budgeted units to be sold.
• C) Actual sales mix percentage is less than the budgeted sales mix percentage.
• D) Budgeted sales mix percentage is less than the actual sales mix percentage.
• E) Total actual sales dollar from the product is less than the budgeted sales dollar for the product.

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Definitions:

Business Owners

Individuals who own and have invested resources in a business, responsible for strategic decision-making and managing operations.

Large Sums

Considerable amounts of money, often involved in financial transactions or investments.

Independence

The state of being free from the control or influence of others, often referring to self-sufficiency in business operations.

Small Businesses

Enterprises characterized by fewer employees and lower revenue compared to larger companies.