In 2018, Flowers Ltd Budgeted Its Sales Volume at 10,000

question 23

Multiple Choice

In 2018, Flowers Ltd budgeted its sales volume at 10,000 units. Actual volume was 9,800 units. If Flowers Ltd uses the static budget to calculate variances and assuming that inventory levels are insignificant, which of the following statements is true?

• A) Budgeted variable costs will be overstated compared to actual variable costs
• B) Profits will be less than expected
• C) Profits will be more than expected due to favourable cost variances
• D) Sales managers will not receive a bonus

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Definitions:

Anxiety Construct

A psychological framework or model representing the various aspects and manifestations of anxiety as a mental health condition.

Content Validity

The extent to which a test measures all aspects of the concept or construct it is intended to assess.

Cronbach's Alpha

A measure of internal consistency or reliability of the items in a test or questionnaire, indicating how closely related the items are as a group.

Correlation Coefficients

Correlation coefficients are statistical measures that quantify the degree to which two variables change in relation to each other, indicating both the strength and direction of this relationship.