The effect of changes in the total industry sales of the firm's product is measured by:
A) Market mix variance.
B) Market share variance.
C) Market price variance.
D) Market quantity variance.
E) Market size variance.

Question

Quizplus · Accepted Answer

The total industry sales of the firm's product are captured by the market size, which is the total demand for the product in the market. Therefore, the effect of changes in the total industry sales would be measured by the market size variance. Choices A to D do not capture the overall effect of the market on the firm's sales.

The Effect of Changes in the Total Industry Sales of the Firm's