Question

Which of the following statements is not correct? a. The sales mix variance measure the impact...

Which of the following statements is not correct?

a. The sales mix variance measure the impact of substitution.

b. The sales quantity variance measures the variance in sales quantity, holding the sales mix constant.

c. The sales activity variance can be divided into two components: sales mix and market share.

d. A sales mix variance provides useful information for a company that sells multiple products.

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Answer #1

Here Answer is C. The sales activity variance can be divided into two components: sales mix and market share.

As

Sales activity variance does not calculate in finding the market share effect or sales activity variance is not divided for market share as sales volume variance is due to sales mix variance and sales quantity variance but not at all market share

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