More Insight into the Static-Budget Variance Can Be Gained by Subdividing

question 2

Multiple Choice

More insight into the static-budget variance can be gained by subdividing it into:

• A)the sales-mix variance and the sales-quantity variance
• B)the market-share variance and the market-size variance
• C)the flexible-budget variance and the sales-volume variance
• D)a cost hierarchy

---

Definitions:

Fundamental Breach

A serious violation of a contract that permits the aggrieved party to terminate the agreement and seek damages.

Exculpatory Clause

A contract provision that relieves one party of liability if damages are caused during the execution of the contract.

Performance

Completion by both parties of the terms of a contract.

Substantial Performance

Performance of a contract in all but a minor aspect of it.