Use the Partial Income Statement Below to Answer the Following

question 17

Multiple Choice

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

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

• A)cost of goods sold was lower than budgeted but other costs were higher
• B)cost of goods sold was higher than budgeted but other costs were lower
• C)all expenses were reasonable
• D)net income was higher than budgeted because the percent difference for expenses was less than the difference for sales