Question

Sales mix is: a. important to sales managers but not to accountants. b. easier to analyze on absorption costing income statements. c. a measure of the relative percentage of a company's variable costs to its fixed costs. d. a measure of the relative percentage in which a company's products are sold.

Answer 1

Answer:

D) a measure of the relative percentage in which a company's products are sold.

Explanation:

The sales mix of a company refers to the percentage or proportion in which their products are sold. For example, a company that sells 2 products A and B, its sales mix could be 45% of product A and 55% of product B. It basically measures the importance or relative weight of each product compared to the total sales of the company. Sales mix is usually measured in dollars, not units sold.