A Favourable Sales Volume Variance for a Substitute Product in a Multiple-Product

question 180

True/False

A favourable sales volume variance for a substitute product in a multiple-product firm does NOT necessarily imply a favourable sales mix variance for that substitute product.

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Definitions:

Suspension

Liquid through which a solid is dispersed and from which the solid separates unless the liquid is kept in motion.

Equilibrium

A state of balance between opposing forces or actions.

Steady State

A condition where all aspects of a system are in balance and unchanging over time, often used in physics, chemistry, and physiology.

Activation

The process of making something active or operative, such as initiating a chemical reaction or stimulating a cell to perform a function.