When Will Be the Sales-Mix Variance Unfavourable

question 62

Multiple Choice

When will be the sales-mix variance unfavourable?
Variant question

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

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Definitions:

Financial Risk

Financial risk involves the possibility that a company's cash flow will not be sufficient to meet its obligations, which can result from volatility in the markets, business operations, or creditworthiness.

Commodity Swap

A financial agreement where two parties exchange cash flows related to a specific commodity's price.

Short-Term Price Movements

Fluctuations in the price of securities that occur within a brief period, often influenced by market sentiment and news.

Swap Contract

An agreement between two parties to exchange sequences of cash flows over a set period of time, generally used to exchange different types of interest rates or currencies.