Multiple Choice
Endeavour Company is Morse Products' largest customer. A variance analysis of customer profitability prepared by Morse for Endeavour Company revealed a favorable customer purchase volume variance and an unfavorable market share variance. This means that:
A) Endeavour purchased less than Morse planned.
B) Morse increased its share of Endeavour's business but Endeavour's total purchases declined.
C) Endeavour's purchases of the products sold by Morse exceeded the amount budgeted by Morse, but a smaller fraction of those purchases than expected were from Morse.
D) Endeavour Company had a positive impact on Morse's profitability for the period analyzed.
Correct Answer:
Verified
Correct Answer:
Verified
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