Which Is the Following Is the Most Appropriate Reason That

question 102

Multiple Choice

Which is the following is the most appropriate reason that sales mix decisions should be made using variable costing?

• A)All costs,including fixed costs,are controllable by upper management in the long run.
• B)To increase profits,businesses should emphasize the products with the highest contribution margin.
• C)Sales mix decisions primarily focus on fixed costs.
• D)Fixed costs do not affect the operating profit in the long-run.

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Definitions:

Cash Disbursements

Payments made in cash or cash equivalents, covering various expenses such as salaries, supplies, and other operational costs.

Selling and Administrative Expense

Costs related to the selling of products and the administration of a business, excluding manufacturing costs.

Master Budget

An inclusive financial planning document that consolidates all of a company’s individual budgets and plans for the upcoming fiscal period.

Production Budget

A financial plan that estimates the number of units that need to be manufactured to meet sales goals and inventory requirements.