The Sales-Mix Variance Will Be Unfavorable When ________

question 62

Multiple Choice

The sales-mix variance will be unfavorable when ________.

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

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Definitions:

T-statistic

A statistical measure used to analyze the difference between two group means in relation to the variance observed within the groups.

Alpha

Alpha, often represented as α, is the threshold probability of committing a Type I Error, typically set at 0.05 or 5% in hypothesis testing.

T-statistic

The T-statistic is a ratio used in hypothesis testing that compares the difference between an observed sample mean and a known value, to the standard error of the mean.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically set against the alternative hypothesis in statistical testing.