The Exhibit Below Reflects a Summary of Performance for a Single

question 23

Multiple Choice

The exhibit below reflects a summary of performance for a single item of a retail store's inventory for the month ended April 30: (CIA adapted) $\begin{array}{lccccccc}&&&&\text { Flexible }&&& \text { Static }\\&&\text { Actual } && \text { Budget } & &\text { Flexible } & \text { (Master) } \\&&\text { Results } && \text { Variances } && \text { Budget } & \text { Budget }\\\text { Sales (units) } & & 11,000 & & -0 & & 11,000 & 12,000 \\ \text { Revenue (sales) } & \$ & 208,000 &\text { \$ } & 12,000 \mathrm{U} & \$ & 220,000 & \$ 240,000 \\ \text { Variable costs } & & 121,000 & & 11,000 \mathrm{U} & & 110,000 & 120,000 \\\text { Contribution margin } & \text { \$ } & 87.000 & \text { \$ } & 23.000 \mathrm{U} & \text { \$ } & 110.000 & \$ 120.000 \\\text { Fixed costs } & & 72,000 & & -0 & & 72,000 & 72,000 \\ \text { Operating Income } & \$ & 15,000 &\text { \$ } & 23,000 \mathrm{U} & \$ & 38,000 & \$ 48,00 \\ \end{array}$ The sales activity variance is:

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Definitions:

Amortization

The gradual reduction of a debt over a period of time through regular payments or the systematic allocation of intangible asset costs over its useful life.

Common Stock

A type of equity ownership in a corporation, with voting rights and eligibility to receive dividends.

Building

A structure with a roof and walls, such as a house or factory, used for a variety of purposes.

Stock Traded

The buying and selling of company shares or equity securities in financial markets.