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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 Answer : a Difficulty : 1 Objective : 7 93. The budgeted contribution margin per composite unit for the budgeted mix can be computed by Answer : b Difficulty : 1 Objective : 7 94. The sales-mix variance results from a difference between the 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 Answer : d Difficulty : 3 Objective : 7
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ch14tif-2 - CHAPTER 14 COST ALLOCATION...

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