Question : 11) The static-budget variance will be favorable, when ________. A) budgeted : 1211829

 

11) The static-budget variance will be favorable, when ________.

A) budgeted unit sales are more than actual unit sales

B) the actual contribution margin is less than the static-budget contribution margin

C) the actual sales mix shifts toward the less profitable units

D) the flexible-budget and the sales-volume variance are favorable

 

12) 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 sales-mix variance

C) the flexible-budget variance and the market-size variance

D) the flexible-budget variance and the sales-mix variance

 

13) The budgeted contribution margin per composite unit for the budgeted sales mix can be computed by dividing the ________.

A) total budgeted contribution margin by the actual total units

B) total budgeted contribution margin by the total budgeted units

C) actual total contribution margin by the total actual total units

D) actual total contribution margin by the total budgeted units

 

14) The difference between budgeted contribution margin per composite unit for the actual mix and the budgeted contribution margin per composite unit for the budgeted mix is the ________.

A) material-mix variance

B) flexible-budget variance

C) sales-mix variance

D) sales-volume variance

15) The sales-mix variance will be unfavorable when ________.

A) the actual sales mix shifts toward the less profitable units

B) the contribution margin per composite unit for the actual mix is greater than the budgeted mix

C) the actual unit sales are less than the budgeted unit sales

D) the actual contribution margin is less than the static-budget contribution margin

 

16) The sales-mix variance will be favorable when ________.

A) the actual contribution margin is greater than the static-budget contribution margin

B) actual unit sales are more than budgeted unit sales

C) the actual sales mix shifts toward the less profitable units

D) the budgeted contribution margin for actual sales mix is  greater than for the budgeted mix

 

17) An unfavorable sales-mix variance would most likely be caused by ________.

A) a new competitor providing better service in the high-margin product sector

B) a competitor having distribution problems with high-margin products

C) the company offering low-margin products at a higher price

D) the company experiencing quality-control problems that get negative media coverage of low-margin products

 

18) A shift towards a mix of products with a lower contribution margin per unit will most likely result in a(n) ________.

A) unfavorable sales-mix variance

B) unfavorable sales-quantity variance

C) favorable sales-mix variance

D) favorable sales-quantity variance

 

19) The sales-quantity variance will be favorable when ________.

A) sales-volume variance and flexible-budget variance are favorable

B) actual units of all products sold exceed budgeted units of all products sold

C) the actual sales mix shifts towards the more profitable units

D) static-budget variance and flexible-budget variance are favorable

20) The sales-quantity variance will be unfavorable when ________.

A) the composite unit for the actual mix is less than for the budgeted mix

B) the actual unit sales are less than the budgeted unit sales

C) the actual contribution margin  per unit is less than the static-budget contribution margin

D) the actual sales mix shifts toward the less profitable units

 

 

 

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