A Favorable Total Sales-Mix Variance Arises When the Actual Sales-Mix

question 137

True/False

A favorable total sales-mix variance arises when the actual sales-mix percentage for the higher contribution margin products is less than the budgeted sales-mix percentage.

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Definitions:

Capacity Utilization

Refers to the percentage of total production capacity that is actually being used by a company over a specific period.

Mass Customization

A marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Market Segmentation

The process of dividing a heterogeneous market into smaller, more homogeneous groups of customers with similar needs, characteristics, or behaviors.