The market share variance is the difference in the budgeted contribution margin for actual market size in units caused solely by the actual market share being different from the budgeted market share.

Question

Quizplus · Accepted Answer

This statement accurately describes the concept of market share variance. The difference in the actual market share from the budgeted market share can affect the contribution margin and lead to a variance in the expected budgeted profits.

The Market Share Variance Is the Difference in the Budgeted