The difference between budgeted contribution margin for actual sales mix and budgeted sales mix is called __________?
Correct answer: A. sales mix variance
- A. sales mix variance
- B. cost mix variance
- C. volume mix variance
- D. sales quantity variance
Explanation
Sales mix variance measures the difference caused by using the actual sales mix instead of the budgeted mix, while holding budgeted contribution margins per unit constant. This is distinct from sales quantity variance, which concerns the total number of units sold.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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