The Market Share Variance Is Calculated by

question 9

Multiple Choice

The market share variance is calculated by

• A)[(Actual industry sales in units −Budgeted industry sales in units) × (Budgeted market share percentage)] × (Budgeted average unit contribution margin).
• B)[(Actual market share percentage − Budgeted market share percentage) × Actual industry sales in units] × Budgeted average unit contribution margin.
• C)(Actual quantity sold − Budgeted quantity sold) × Budgeted average unit contribution margin.
• D)(Actual quantity sold − Budgeted quantity sold) × Actual average unit contribution margin.

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Definitions:

Financial Consideration

The financial aspects that must be evaluated in decision-making processes, including costs, revenues, and profitability.

Purchase Decision

The process that leads consumers to buy a product or service after considering various factors and alternatives.

Information Search

Information search is the process by which consumers seek out and use various sources of information to make informed decisions before making a purchase.

Alternative Evaluation

A stage in the consumer decision process where different options are assessed against criteria like features, benefits, price, and quality, to make a purchase decision.