Alpha Company provides tax planning and consulting services. Last year, Alpha captured a larger than anticipated share of Mega Company's purchases of such services. In a variance analysis of customer profitability, this difference will be noted by:
A) A favorable customer market share variance.
B) An unfavorable customer market share variance.
C) A favorable customer purchase volume variance.
D) An unfavorable customer purchase volume variance.

Question

Quizplus · Accepted Answer

A favorable customer market share variance occurs when a company captures a larger share of purchases than anticipated, indicating better performance in attracting or retaining customers within its market segment.

Alpha Company Provides Tax Planning and Consulting Services