The Sales-Quantity Variance Will Be Unfavorable When

question 144

Multiple Choice

The sales-quantity variance will be unfavorable when:

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

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Definitions:

Friedman Test

A test that doesn't rely on parameter-specific data, used to identify treatment variances across several trials.

One-tail

A type of hypothesis test that determines the significance of one end, or tail, of the data distribution.

Two-tail

Pertains to hypothesis tests that consider extreme outcomes in both tails of the distribution, allowing for tests of deviation in two opposite directions.

7-point Scale

A survey response scale that offers seven possible answers, often used to measure opinion or intensity.