Below Is a Performance Report That Compares Budgeted and Actual

question 35

Multiple Choice

Below is a performance report that compares budgeted and actual profit of Atlanta Enterprises for the month of June:
$\begin{array}{lrrr}&\text { Budget } & \text { Actual } & \text { Difference } \\\hline\text { Sales } & \$ 182,000 & \$ 180,000 & (\$ 2,000) \\\text { Less: } & & & \\\text { Cost of ingredients } & 145,000 & 141,000 & 4,000 \\\text { Salaries } & 24,000 & 23,000 & 1,000\\\text { Controllable profit }& \$ \overline{13,000} &\$ {16,000} &\$ {3,000}\end{array}$
In evaluating the department in terms of its changes in sales and expenses, what will be most important to investigate?

• A) Sales
• B) Cost of ingredients
• C) Salaries
• D) Debtors

---

Definitions:

Direct Liability Doctrine

A principle that holds an individual or entity directly responsible for their actions or omissions that cause harm or damage, without needing to rely on the actions of another party.

Vicarious Liability

Legal responsibility assigned to one party for the actions of another, typically seen in employment where the employer is liable for employees' acts.

Vehicular Homicide

A legal charge for causing the death of a person due to illegal driving of an automobile, including driving under the influence.

Criminal Record

A documented history of an individual's criminal convictions and charges, maintained by government agencies.