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What two variances can be divided into more variances?

O sales mix variance and market share variance.

O market size variance and market share variance.

O sales quantity variance and sales volume variance.

O sales quantity variance and sales mix variance. sales mix variance and market size variance.

1 Answer

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Final answer:

The sales quantity variance and the sales mix variance can be further analyzed for understanding sales performance. The sales quantity variance looks at the quantity sold versus expected, while the sales mix variance compares the proportion of each product sold against the budgeted mix.

Step-by-step explanation:

The two variances that can be divided into more variances are the sales quantity variance and the sales mix variance. These two are related to the analysis of sales performance and profitability in business.

The sales quantity variance examines the difference between the actual quantity sold and the budgeted quantity, based on the standard profit per unit. It helps in understanding the impact of the quantity of sales on the overall profitability of the business.

The sales mix variance, on the other hand, compares the actual mix of products sold to the budgeted sales mix. It is particularly important when a company sells multiple products, as the sales mix can significantly influence profit levels due to varying margins on different products.

The concept of pooled variance mentioned in the additional information can be related to the examination of variances within samples where the variance is averaged or weighted based on the sample sizes. This concept, although related to statistics, can be applied to business when analyzing sales data from different segments or periods.

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