The Direct Materials Mix Variance Will Be Favourable When

question 3

Multiple Choice

The direct materials mix variance will be favourable when

• A)the flexible-budget contribution margin is greater than the actual contribution margin.
• B)the actual direct materials input mix is less expensive than the budgeted direct materials input mix.
• C)the actual quantity of total inputs used is greater than the flexible budget for total inputs.
• D)actual unit sales are less than budgeted unit sales.
• E)the input-efficiency variance is favourable.

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Definitions:

Trough

A Trough in economics is a phase in the business cycle where activity is at its lowest point, preceding a recovery and expansion phase.

Business Cycle

The Business Cycle is the fluctuation of economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.

Recovery Phase

A stage in the economic cycle where activity starts to increase again after a downturn, leading to improvements in employment, consumer confidence, and spending.

Recessionary Phase

A period in the business cycle where the economy is contracting, leading to reduced economic activity and increased unemployment.