The sales-quantity variance will be unfavorable when which of the following occurs?
A) the composite unit for the actual mix is less than for the budgeted mix
B) the actual unit sales are less than the budgeted unit sales
C) the actual contribution margin per unit is less than the static-budget contribution margin
D) the actual sales mix shifts toward the less profitable units

Question

Quizplus · Accepted Answer

The sales-quantity variance is unfavorable when actual unit sales are less than budgeted unit sales, indicating that fewer units were sold than planned, leading to lower revenue.

The Sales-Quantity Variance Will Be Unfavorable When Which of the Following