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.

Grasp the significance of corporate responsibility in balancing profit, consumer satisfaction, and societal well-being.

Recognize the legal frameworks, including Sarbanes-Oxley Act, aimed at combating unethical practices in corporations.

Understand the concept and implications of whistle-blowing in the business context.

Recognize the importance of ethical corporate considerations beyond profit.

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Definitions:

Service Quality

The measure of how well a delivered service matches customer expectations, reflecting the discrepancy between perceived service and expected service.

Assurance

Confidence or guarantee in the quality or performance of a product, service, or outcome.

Service Quality

Pertains to the degree of excellence of a service as perceived by customers, often evaluated based on expectations vs. performance.

Communication Gap

A situation where a misunderstanding or lack of clarity occurs due to differences in communication styles, language barriers, or misinterpretation of messages.