The Sales-Quantity Variance Arises Because

question 53

Multiple Choice

The sales-quantity variance arises because

• A)the mix of individual products actually sold differs from the budgeted mix.
• B)the total quantity of units actually sold differs from the static budget.
• C)the total quantity of units expected to be sold differs from the static budget.
• D)the mix of budgeted products sold differs from the actual product mix.
• E)the budgeted sales in units cannot be achieved unless the price is decreased.

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Definitions:

Tangent

A straight line that touches a curve at a single point without crossing it, often used in geometry and calculus to represent the slope of the curve at that point.

Diseconomies of Scale

An economic concept referring to a situation where, as a firm expands, the costs per unit increase.

Long-Run Average Total Cost Curve

A graphical representation that shows the lowest average total cost at which a firm can produce any given level of output in the long run, where all inputs are variable.

Downward-Sloping

A term often used in economics to describe a curve or line that represents a decrease in one variable as another increases, typical in demand curves.