The Sales-Quantity Variance Will Be Unfavourable When

question 22

Multiple Choice

The sales-quantity variance will be unfavourable when:

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

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Definitions:

Alpha

A coefficient representing the level of significance in hypothesis testing, often set at 0.05 or 5%, indicating the probability of rejecting a true null hypothesis.

Publishing Contract

A legal agreement between an author and a publisher, specifying the rights, obligations, and financial arrangements for the publication of a work.

Null Hypothesis

In statistics, the assumption that there is no effect or no difference, and it serves as the basis for significance testing.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women, used to categorize underweight, normal weight, overweight, and obesity.