The revenue budget variance cannot be caused by changes in sales mix as total sales is unaffected by sales mix.

Question

Quizplus · Accepted Answer

The revenue budget variance can indeed be caused by changes in sales mix, even if total sales remain constant, because different products or services typically have different selling prices and profit margins. Changes in the proportion of these products or services sold can therefore affect total revenue and profitability.

The Revenue Budget Variance Cannot Be Caused by Changes in Sales