(Appendix 11A)If two products are close substitutes,the sales volume variance for each product can be split into a sales quantity variance and a sales mix variance.

Question

Quizplus · Accepted Answer

When two products are close substitutes, the sales volume variance for each product can be broken down into a sales quantity variance (resulting from changes in the number of units sold) and a sales mix variance (resulting from changes in the proportion of each product sold).

(Appendix 11A)If Two Products Are Close Substitutes,the Sales Volume Variance