[Chapter 1] Notes: Sales Mix Variance Flashcards
_________________ represents the proportion of total sales yielded by a product.
SALES MIX
Sum of the change in units for each product multiplied by the difference between the budgeted contribution margin and the budgeted average unit contribution margin.
SALES MIX VARIANCE
Proportion of industry sales accounted for by a company
MARKET SHARE
Total revenue for the industry
MARKET SIZE
The difference between actual market share percentage and the budgeted market share percentage multiplied by actual industry sales in units times budgeted average unit contribution margin.
MARKET SHARE VARIANCE
The difference between actual and budgeted industry sales in units multiplied by the budgeted market share percentage times the budgeted average unit contribution margin
MARKET SIZE VARIANCE
The impact of changing market size on profits can be assessed through _________________.
MARKET SIZE VARIANCE
_______________ describes the profit history of the product according to four stages.
PRODUCT LIFE CYCLE
During the _______________, profits are low as the product gains market acceptance. Investment and learning may also be high.
INTRODUCTORY PHASE
The ________________ is characterized by increasing market acceptance and sales.
GROWTH STAGE
In the ________________, profits stabilize.
MATURITY PHASE
In the __________________, the product reaches the end of its cycle, and revenues and profits decline.
DECLINE PHASE
_________________ are the highest in the introduction phase, as new materials are sought in small order quantities.
UNIT-LEVEL COSTS
Unit-level costs begin to rise in the growth phase.
FALSE
Batch-level costs follow a similar pattern to unit-level costs.
TRUE
