For a company that produces more than one product,the sales volume variance can be divided into which two of the following additional variances? (CMA adapted)
A) Sales price variance and flexible budget variance.
B) Sales mix variance and sales price variance.
C) Sales efficiency variance and sales price variance.
D) Sales quantity variance and sales mix variance.

Question

Quizplus · Accepted Answer

The sales volume variance for a company producing multiple products can be divided into sales quantity variance and sales mix variance. Sales quantity variance measures the effect of selling a different total quantity than planned, while sales mix variance measures the effect of selling a different mix of products than planned.

For a Company That Produces More Than One Product,the Sales