In Analyzing Company Operations, the Controller of the Carson Corporation

question 75

Multiple Choice

In analyzing company operations, the controller of the Carson Corporation found a $250,000 favorable flexible budget revenue variance. The variance was calculated by comparing the actual results with the flexible budget. This variance can be wholly explained by: (CMA adapted)

• A) the total flexible budget variance.
• B) the total static budget variance.
• C) changes in unit selling prices.
• D) changes in the number of units sold.

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Definitions:

Flashes

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Floaters

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Hammer

A tool used for hitting nails, breaking objects or shaping materials, typically consisting of a handle and a heavy metal head.

Startled

A sudden, involuntary reaction to surprise or fear.