The Sales-Mix Variance Will Be Favorable When

question 44

Multiple Choice

The sales-mix variance will be favorable when:

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

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Definitions:

Increasing Opportunity

Increasing opportunity involves the growth or expansion of choices and avenues through which individuals or organizations can achieve desired goals or outcomes.

Production Possibilities Curves

A graphical representation showing the maximum combination of goods and services that can be produced within a set timeframe with available resources.

Trading Possibilities Curves

A graphical representation depicting the range of goods and services that a country can produce and trade given its resources and technology.

Substitutability

The degree to which one product or service can be replaced by another to satisfy the same need or want.