The sales-quantity variance will be unfavorable when:
A)the composite unit for the actual mix is greater than for the budgeted mix
B)actual unit sales are less than budgeted unit sales
C)the actual contribution margin is greater than the static-budget contribution margin
D)the actual sales mix shifts toward the less profitable units

Question

Quizplus · Accepted Answer

The sales-quantity variance compares the budgeted unit sales with the actual unit sales. If the actual unit sales are less than budgeted unit sales, then the sales-quantity variance will be unfavorable. The other options do not necessarily lead to an unfavorable sales-quantity variance.

The Sales-Quantity Variance Will Be Unfavorable When