An Unfavourable Sales-Mix Variance Would MOST Likely Be Caused By

question 69

Multiple Choice

An unfavourable sales-mix variance would MOST likely be caused by:

• A)a new competitor providing better service in the high-margin product sector.
• B)the company offering low-margin products at a higher price.
• C)a competitor having distribution problems with high-margin products.
• D)the company experiencing quality-control problems that get negative media coverage of low-margin products.

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Definitions:

Current Ratio

A financial ratio indicating how well a firm can cover its short-term liabilities with its present assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business, whichever is longer.

Current Liabilities

Financial obligations a company is expected to settle within one year or within its normal operating cycle, whichever is longer.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.