Use the Partial Income Statement Below to Answer the Following

question 5

Multiple Choice

Use the partial income statement below to answer the following group of questions

$\begin{array}{lrrr} & \text { Actual } & \text { Budget } & \text { Difference } \\\text { Revenue from Sales } & \$ 65000 & \$ 55000 & 18 \% \\\text { Sales Discounts } & -5000 & -2000 & 150 \% \\\text { Net Sales } & 60000 & 53000 & 13 \% \\\text { Advertising } & 4000 & 1000 & 300 \% \\\text { Cost of Goods Sold } & 25000 & 28000 & -11 \% \\& & & \\\text { Sales Commissions } & 6000 & 3000 & 100 \% \\\text { Other Expenses } & 4000 & 4000 & 0 \% \\\text { Total Expenses } & 39000 & 36000 & 8 \%\\\\\text{Net Income}&\underline{21000}&17000& \mathbf{2 4 \%}\end{array}$
-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:

Societal Clusters

Groups of societies that share similar cultural, economic, or social characteristics.

Preconceived Notions

Pre-existing beliefs or opinions formed without adequate knowledge or experience, often leading to biases.

Cross-Cultural Leadership

The process of leading across cultures.

Different Cultures

Refers to the diversity of traditions, values, and practices that characterize various societies around the world.