More insight into the sales-volume variance can be gained by subdividing it into:
A)the sales-mix variance and the sales-quantity variance
B)the market-share variance and the market-size variance
C)the flexible-budget variance and the market-size variance
D)a cost hierarchy

Question

Quizplus · Accepted Answer

Subdividing the sales-volume variance into sales-mix variance and sales-quantity variance allows for a better understanding of the factors contributing to the overall variance. The sales-mix variance measures the impact of changes in the proportion of product sales, while the sales-quantity variance measures the impact of changes in the number of units sold. This information can be useful in making decisions related to product mix and pricing strategies. Option B and C are incorrect as they refer to market factors, while Option D refers to cost and is not relevant to sales-volume variance.

More Insight into the Sales-Volume Variance Can Be Gained by Subdividing