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Q1. Which of the following statements is (are) false?
1. All variences should be prorated to inventories and cost of goods sold at the end of the accounting period.
2. If the number of units produced exceeds the number of units sold, the full absorption operating profit will be lower than variable costing operating profit
A. 1
B. 2
C. Both
D. Neither
Q2. Which of the following statements is(are) true?
1.The market share varience is more controllable by the marketing department than the industry
2. The industry volume varience is the portion of the sales activity varience due to a change in the company’s proportion of sales in the markets in which they operate
A. 1
B. 2
C. Both
D. Neither
Q3 The sales mix varience would be:
A. Favorable when a company sells relatively fewer of the products that have contribution margins lower than average
B. favorable when a company sells relatively more of the products that have contribution margins higher than average
C. unfavorable when a company sells relatively fewer of the products that have selling prices higher than average
D. unfavorable when a company sells more of the products that have selling prices lower than the average
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