Objective 14.6
1) The sales-quantity variance can be decomposed into ________.
A) sales-mix variance and sales-volume variance
B) static-budget variance and flexible-budget variance
C) flexible-budget variance and sales-volume variance
D) market-share variance and market-size variance
2) Flexible budget contribution margin is equal to ________.
A) actual contribution margin per unit times actual units sold of each product
B) actual contribution margin per unit times budgeted units sold of each product
C) budgeted contribution margin per unit times budgeted units sold of each product
D) budgeted contribution margin per unit times actual units sold of each product
3) Sales-mix variance = $250,000 (F), sales-volume variance = $4,50,000 (U), flexible-budget variance = $200,000(F), market-size variance = $30,000(U), calculate the sales-quantity variance.
A) $170,000 (U)
B) $200,000 (U)
C) $30,000 (U)
D) $700,000 (U)
4) Market-share variance = $350,000 (U); Market-size variance = $300,000 (F); Sales-mix variance = $600,000 (F); calculate the sales-quantity variance.
A) $350,000 (F)
B) $650,000 (F)
C) $550,000 (F)
D) $50,000 (U)
5) Sales-mix variance = $300,000 (F), sales-quantity variance = $200,000(F), flexible-budget variance = $100,000(F), market-size variance = $50,000(U), calculate the sales-volume variance.
A) $650,000 (F)
B) $450,000 (F)
C) $550,000 (F)
D) $500,000 (F)
6) Flexible-budget variance = $200,000 (F); sales-volume variance = $350,000 (U); sales-mix variance = $300,000 (F); calculate the static-budget variance.
A) $150,000 (U)
B) $300,000 (U)
C) $300,000 (F)
D) $250,000 (F)
7) The sales-volume variance is subdivided into ________.
A) sales-mix variance and static-budget variance
B) sales-mix variance and sales-quantity variance
C) flexible-budget variance and fixed-budget variance
D) market-share variance and static-budget variance
8) The sales-mix variance is calculated by ________.
A) deducting budgeted contribution margin based on actual units at budgeted mix from budgeted contribution margin based on actual units sold at the actual mix
B) deducting budgeted contribution margin based on budgeted units at actual mix from budgeted contribution margin based on actual units sold at the budgeted mix
C) deducting budgeted contribution margin based on actual units at actual mix from budgeted contribution margin based on budgeted units sold at the budgeted mix
D) deducting budgeted contribution margin based on actual units at actual mix from budgeted contribution margin based on actual units sold at the actual mix
9) The static-budget variance is the difference between ________.
A) an actual result and the corresponding budgeted amount in the static budget
B) the budget amount in the static budget and the amount in the flexible budget
C) an actual result and the flexible budget amount
D) the static budget amount and the sales-volume variance
10) More insight into the static-budget 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 sales-volume variance
D) the flexible-budget variance and the sales-mix variance
