The Sales-Mix Variance Is the Difference Between Budgeted Contribution Margin

question 95

True/False

The sales-mix variance is the difference between budgeted contribution margin for the actual sales mix and the budgeted contribution margin for the budgeted sales mix.

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Definitions:

Capital Balances

The amount of money that partners or owners have invested in a business, often reflected in the equity section of the balance sheet.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, representing the actual earnings retained.

Closing the Revenue

The process of transferring the balances from revenue accounts to a permanent equity account at the end of an accounting period.

Capital Account Balance

The amount in a company or partnership's capital account, representing ownership interest in the entity.