The Sales-Mix Variance Will Be Unfavorable When

question 115

Multiple Choice

The sales-mix variance will be unfavorable when:

• A)the actual sales mix shifts toward the less profitable units
• B)the composite unit for the actual mix is greater than for the budgeted mix
• C)actual unit sales are less than budgeted unit sales
• D)the actual contribution margin is greater than the static-budget contribution margin

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Definitions:

Constructive Trust

An equitable remedy imposed by a court to rectify situations where injustice would otherwise occur due to wrongful possession of property.

Irrevocable Living Trust

A legal arrangement where a grantor places assets into a trust, relinquishing control over them, and the assets are managed by a trustee for the benefit of the trust's beneficiaries. Once established, it cannot be amended or dissolved.

Probate

The legal process by which a will is reviewed to determine whether it is valid and authentic.

Trustee

A person or entity given responsibility to manage property or assets on behalf of others, typically within a trust.