The Sales-Mix Variance Results from a Difference Between The

question 53

Multiple Choice

The sales-mix variance results from a difference between the:

• A)actual market size in units and the budgeted market size in units.
• B)actual market share and the budgeted market share.
• C)budgeted contribution margin per composite unit for the actual mix and the budgeted contribution margin per composite unit for the budgeted mix.
• D)actual contribution margin and the budgeted contribution margin.

Determine bond interest expense under both the effective-interest and straight-line methods.

Calculate the carrying value of bonds after amortization.

Differentiate between the effective-interest method and the straight-line method in terms of their impact on interest expense and bond carrying value.

Understand the concepts of bond discount and premium, and how they affect the carrying value of bonds.

---

Definitions:

Entrepreneur's Talent

is the unique skill set, creativity, and capacity to innovate and take risks that an entrepreneur brings to the economic table, instrumental in starting and growing businesses.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain exceeding the opportunity costs of resources.

Implicit Costs

Non-direct payments or out-of-pocket costs, representing the opportunity costs of using resources owned by the firm for its own use.

Explicit Costs

Payments made directly to individuals or entities for business operations, including salaries, leasing costs, and supplies.