Miriam's Income Statement for the Previous (20X1)year Was as Follows

question 19

Essay

Miriam's Income Statement for the previous (20X1)year was as follows:
a Calculate the variances from budget (and designate as favourable or unfavourable).
b Explain possible reasons for the 3 most significant revenue or expense item budget variances (ignore profit and subtotal variances);also explain a possible reason for the telephone and internet variance.

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Definitions:

Perfect Rationality

A decision strategy that is completely informed, perfectly logical, and oriented toward economic gain.

Nobel Prize

A set of annual international awards bestowed in several categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances.

Herbert Simon

An American economist and cognitive psychologist known for his research in the fields of decision-making and artificial intelligence; he is credited with the concept of bounded rationality.

Perfectly Rational

The theoretical concept of making decisions based on complete information and logical, objective analysis.