An Favorable Direct Materials Mix Variance Results When More Expensive

question 105

True/False

An favorable direct materials mix variance results when more expensive direct materials are substituted for less expensive direct materials.

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Definitions:

MR

Marginal Revenue, the change in total revenue that results from selling one additional unit of a product or service.

MC

The additional cost of producing one more unit of a product or service, known as marginal cost.

Substitute Brands

Brands that offer products or services which consumers may use in place of each other based on preference, price, or availability.

Increase Profits

Strategies or actions taken by a business to boost its earnings above its expenses.