Korsak Corporation Is a Service Company That Measures Its Output

question 126

Multiple Choice

Korsak Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. The planning budget for October was based on serving 23 customers, but a total of 19 customers were actually served during October.
The activity variance for revenue for October would have been closest to:

• A) $22,000 U
• B) $20,400 U
• C) $22,000 F
• D) $20,400 F

---

Definitions:

Prediction

The act of forecasting or estimating future values or outcomes based on current or past data.

Correlation Coefficient

A numerical measure that quantifies the degree and direction of the relationship between two variables.

Association

A statistical relationship between two or more variables, indicating that changes in one variable are related to changes in another variable, without implying causation.

Greek Letter

Symbols from the Greek alphabet used in various scientific fields, including mathematics and statistics, to represent variables and constants.