Which of the Following Actually Calculates the Sales-Quantity Variance

question 164

Multiple Choice

Which of the following actually calculates the sales-quantity variance?

• A)(actual units of all products sold)times (actual sales mix percentage minus budgeted sales mix percentage)times (budgeted contribution margin per unit)
• B)(actual sales quantity in units minus static-budget sales quantity in units)times (budgeted contribution margin per unit)
• C)(actual units of all products sold minus budgeted units of all products sold)times (budgeted sales-mix percentage)times (budgeted contribution margin per unit)
• D)(actual units of all products sold minus budgeted units of all products sold)times (budgeted sales-mix percentage)times (actual contribution margin per unit)
• E)(actual units of all products sold)times (actual sales mix percentage minus budgeted sales mix percentage)times (actual contribution margin per unit)

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Definitions:

Standard Deviation

An index indicating the degree of spread or diversity among values in a dataset.

Acquisition Lead Time

The total time taken from recognising a need for a product or service to when it is fully operational or delivered.

Inventory Handling Cost

The expenses associated with managing and maintaining inventory, including storage, labor, material handling, and related overhead.

Standard Deviation

A statistical measure indicating the amount of variation or dispersion from the average in a set of data.