Assume the additional information for Morethanmoney Ltd.
Planned Market Size 20,000
Actual Market Size 19,800
Morethanmoney Ltd's planned market share 25%
The market size variance is:
A) $400 U
B) $400 F
C) $2,000 U
D) $2,000 F

Question

Assume the additional information for Morethanmoney Ltd. 
Planned Market Size 20,000
Actual Market Size 19,800
Morethanmoney Ltd's planned market share 25%
The market size variance is:
A) $400 U
B) $400 F
C) $2,000 U
D) $2,000 F

Quizplus · Accepted Answer

The market size variance is calculated as (Planned Market Size - Actual Market Size) x Planned Market Share. Here, (20,000 - 19,800) x 25% = 200 x 0.25 = 50. Since the actual market size is less than planned, it is unfavorable (U).

Assume the Additional Information for Morethanmoney Ltd