Saturday, May 26, 2012

The sales-quantity variance will be unfavorable when

ACCOUNTING

Multiple Choice

The sales-quantity variance will be unfavorable when

a. the composite unit for the actual mix is greater than for the budgeted mix.

b. actual unit sales are less than budgeted unit sales.

c. the actual contribution margin is greater than the static-budget contribution margin.

d. the actual sales mix shifts toward the less profitable units.

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