More Insight into the Sales-Volume Variance Can Be Gained by Subdividing

question 86

Multiple Choice

More insight into the sales-volume 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 market-size variance
• D)a cost hierarchy

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Definitions:

Salvage Value

The calculated future selling price of an asset at the end of its period of benefit.

Depreciation Expense

Dividing the expenditure associated with a tangible asset over its operational life.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its decrease in value due to use, wear and tear, or obsolescence.

Depletion

The allocation of the cost of natural resources over their productive life, commonly used in industries like mining and forestry.