The Sales Quantity Variance Would Be Favorable When a Company

question 112

Multiple Choice

The sales quantity variance would be favorable when a company sells:

• A) relatively fewer of the products bearing contribution margins lower than average.
• B) relatively more of the products bearing contribution margins higher than average.
• C) more total units than budgeted, holding the sales mix constant.
• D) less total units than budgeted, holding the sales mix constant.

Determine the components and calculations involved in creating a flexible budget.

Evaluate the effect of budget variances on business decision-making and performance measurement.

Understand the application of standard cost systems in managing manufacturing costs.

Analyze the implications of labor rate and efficiency variances on production costs.