Question Details

A favorable sales-mix variance arises 


TRUE/FALSE
1.	The flexible-budget variance is the difference between an actual result and the flexible-budget amount based on the level of output actually achieved in the budget period.

		

2.	Additional insight can be gained by dividing the sales-mix variance into the flexible-budget variance and the sales-volume variance.

3.	A favorable sales-mix variance arises when the actual sales-mix percentage is less than the budgeted sales-mix percentage.

	
4.	A composite unit is a hypothetical unit with weights based on the mix of individual units.

		

5.	The sales-mix variance can be explained in terms of the budgeted contribution margin per composite unit of the sales mix.

		



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