25 May Question 121. An unfavorable market-share variance would MOST likely be cau
Question
121. An unfavorable market-share variance would MOST likely be caused by
a. a competitor providing better service.
b. a competitor having distribution problems.
c. the company offering products at a lower price.
d. the company experiencing quality-control problems that get negative media coverage.
122. The market-size variance results from a difference between the
a. actual market share and the budgeted market share.
b. actual contribution margin and the budgeted contribution margin.
c. budgeted contribution margin per composite unit for the actual mix and the budgeted contribution margin per composite unit for the budgeted mix.
d. actual market size in units and the budgeted market size in units.
123. The market-size variance will be unfavorable when
a. the flexible-budget contribution margin is greater than the static-budget contribution margin.
b. the actual market share is greater than the budgeted market share.
c. actual market size in units is less than budgeted market size in units.
d. actual unit sales are less than budgeted unit sales.
124. A favorable market-size variance would MOST likely be caused by
a. the company reducing the services provided to customers.
b. an increase in overall market size.
c. a new competitor moving into the area.
d. a competitor providing better prices.
125. Reliable information about market size and market share is available
a. for no industries.
b. for the management consulting and personal financial planning industries.
c. for the automobile and television industries.
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