More insight into the sales-volume variance can be gained by subdividing it into ________.
A) the sales-mix variance and the sales-quantity variance
B) the market-share variance and the sales-mix variance
C) the flexible-budget variance and the market-size variance
D) the flexible-budget variance and the sales-mix variance

Question

Quizplus · Accepted Answer

Subdividing the sales-volume variance into the sales-mix variance (caused by changes in the proportion of different products sold) and the sales-quantity variance (caused by changes in the volume sold) provides more specific information on the factors affecting the variance. The other options do not accurately subdivide the sales-volume variance.

More Insight into the Sales-Volume Variance Can Be Gained by Subdividing