The market share variance is:
A) (Budgeted contribution margin per unit − actual contribution margin per unit) × (units sold).
B) (Actual market size in units − budgeted market size in units) × (weighted-average budgeted contribution margin per unit).
C) (Actual market size in units − budgeted market size in units) × (weighted-average budgeted contribution margin per unit) × (the budgeted market share).
D) (Actual market share − budgeted market share) × (budgeted total market size) × (weighted average budgeted contribution margin per unit).
E) (Actual market share − budgeted market share) × (actual total market size) × (weighted average budgeted contribution margin per unit).

Question

Quizplus · Accepted Answer

The market share variance is calculated by taking the difference between the actual market share and the budgeted market share, multiplying it by the actual total market size, and then multiplying by the weighted average budgeted contribution margin per unit.

The Market Share Variance Is