Use the Partial Income Statement Below to Answer the Following

question 9

Multiple Choice

Use the partial income statement below to answer the following group of questions
$$\begin{array} { l r r r } & \text { Actual } & \text { Budget } & \text { Difference } \\\text { Revenue from Sales } & \$ 65000 & \$ 55000 & 18 \% \\\text { Sales Discounts } & - 5000 & - 2000 & 150 \% \\\text { Net Sales } & 60000 & 53000 & 13 \% \\\text { Advertising } & 4000 & 1000 & 300 \% \\\text { Cost of Goods Sold } & 25000 & 28000 & - 11 \% \\& & & \\\text { Sales Commissions } & 6000 & 3000 & 100 \% \\\text { Other Expenses } & 4000 & 4000 & 0 \% \\\text { Total Expenses } & 39000 & 36000 & 8 \% \\& & & \\\text { Net Income } & \mathbf { 2 1 0 0 0 } & \underline { \mathbf { 1 7 0 0 0 } } & \mathbf { 2 4 }\end{array}$$
-From these results, you might conclude -

• A) increased advertising expenditures contributed to better performance
• B) sales commissions were a successful incentive to improve sales results
• C) discount sales terms encouraged more customers to buy
• D) all of the above conclusions are consistent with the results

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Definitions:

Stable Self-Concept

A consistent and unchanging view of oneself, reflecting a clear and stable understanding of one's identity, abilities, and worth.

Institutionalized Conflict

Conflict that occurs when a conflict factor is built into the structure of the organization.

Self-Definition

The way in which an individual perceives, defines, and describes themselves based on their beliefs, values, and experiences.

Democratic Vote

A system where decisions are made based on the majority of votes cast by members of a group or society.