ch14tif-2 - CHAPTER 14: COST ALLOCATION,...

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CHAPTER 14: COST ALLOCATION, CUSTOMER-PROFITABILITY ANALYSIS, AND SALES-VARIANCE ANALYSIS 91. The static-budget variance will be favorable when a. actual unit sales are less than budgeted unit sales. b. the actual contribution margin is greater than the static-budget contribution margin. c. the actual sales mix shifts toward the less profitable units. d. the composite unit for the actual mix is greater than for the budgeted mix. Answer : b Difficulty : 3 Objective : 7 92. 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. Answer : a Difficulty : 1 Objective : 7 93. The budgeted contribution margin per composite unit for the budgeted mix can be computed by a. dividing the total budgeted contribution margin by the actual total units. b. dividing the total budgeted contribution margin by the total budgeted units. c. dividing the actual total contribution margin by the total actual total units d. dividing the actual total contribution margin by the total budgeted units. Answer : b Difficulty : 1 Objective : 7 94. The sales-mix variance results from a difference between the a. actual market share and the budgeted market share. b. actual contribution margin and the budgeted contribution margin. c. budgeted contribution margin per composite unit for the actual mix and the budgeted contribution margin per composite unit for the budgeted mix. d. actual market size in units and the budgeted market size in units. Answer : c Difficulty : 2 Objective : 7 95. The sales-mix variance will be unfavorable when a. the actual sales mix shifts toward the less profitable units. b. the composite unit for the actual mix is greater than for the budgeted mix. c. actual unit sales are less than budgeted unit sales. d. the actual contribution margin is greater than the static-budget contribution margin. Answer : a Difficulty : 3 Objective : 7 Chapter 14 Page 1
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96. 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 less than budgeted unit sales. c. the actual sales mix shifts toward the less profitable units. d. the composite unit for the actual mix is greater than for the budgeted mix. Answer : d Difficulty : 3 Objective : 7 97. 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.
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This note was uploaded on 08/28/2010 for the course ACCTG 101 taught by Professor Smith during the Spring '10 term at Alabama State University.

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ch14tif-2 - CHAPTER 14: COST ALLOCATION,...

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