More Insight into the Sales-Volume Variance Can Be Gained by Subdividing

question 20

Multiple Choice

More insight into the sales-volume variance can be gained by subdividing it into ________.

• A) the sales-mix variance and the sales-quantity variance
• B) the market-share variance and the sales-mix variance
• C) the flexible-budget variance and the market-size variance
• D) the flexible-budget variance and the sales-mix variance

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Definitions:

Sources

Refers to the origins or providers of information, materials, or financial resources.

Economic Profit

The surplus or difference between a firm's total revenues and its opportunity costs, including both explicit and implicit costs.

Sources

The origins or locations from which something is obtained.

Effective Rate

The actual interest rate that a borrower pays on a loan or receives on an investment, taking into account the compounding of interest.