The Market-Share Variance Is the Difference in Actual Contribution Margin

question 31

True/False

The market-share variance is the difference in actual contribution margin for actual market size in units caused solely by actual market share being different from budgeted market share.

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

Cost Of Goods Sold

The immediate expenses associated with manufacturing the products a company sells, such as materials and workforce costs.

Inventory

The complete inventory of products and materials that a company keeps for the aim of either selling them or using them in manufacturing.

Tangible Assets

Assets with a physical form such as machinery, buildings, and land that a company owns and uses in its operations.