The Sales Quantity Variance Is the Difference Between Budgeted Contribution

question 74

True/False

The sales quantity variance is the difference between budgeted contribution margin based on actual units sold of all products at the budgeted mix, and contribution margin in the flexible budget.

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Definitions:

Authority decisions

Decisions made by individuals or bodies who hold power or authority in an organization or group.

Individual decisions

Choices or judgments made by a single person based on personal judgment, beliefs, and attitudes.

Consultative

A leadership or decision-making style that involves seeking input or feedback from others before making a final decision.

Representativeness heuristic

A cognitive shortcut used when making judgments about the probability of an event under uncertainty, based on how similar it is to a typical case.