In Budget Reports -

question 11

Multiple Choice

In budget reports -

• A)the position is favourable when the sales budget amount is higher
• B)the position is unfavourable when the actual sales amount is lower
• C)the position is favourable when the budget expense amount is lower
• D)the position is unfavourable when the actual expense amount is lower

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Definitions:

Cash Account

An account that reflects the amount of cash a company has on hand, which includes currencies, checks, and balances in bank accounts.

Raw Material

Basic substances in their natural, modified, or semi-processed state used to produce goods and services.

Standard Costs

Predetermined costs for materials, labor, and overhead used as a benchmark for measuring performance.

Pounds

A unit of weight commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.