Using the abbreviations listed below,what is the formula for the industry volume variance? AMS = actual market share
BMS = budgeted market share
BCM = budgeted contribution margin per unit
ACM = actual contribution margin per unit
ATM = actual total market
BTM = budgeted total market
A)(ATM - BTM)(BMS)(ACM)
B)(ATM - BTM)(BMS)(BCM)
C)(AMS - BMS)(ATM)(ACM)
D)(AMS - BMS)(ATM)(BCM)
E)(ATM - BTM)(AMS)(ACM)

Question

Quizplus · Accepted Answer

The industry volume variance is calculated as the difference between the budgeted contribution margin and the actual contribution margin multiplied by the difference between the actual and budgeted market share. Therefore, the formula should include (ATM - BTM)(BMS) and either (ACM - BCM) or (BCM - ACM). Option B is the only one that includes both elements.

Using the Abbreviations Listed Below,what Is the Formula for the Industry