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:

Decision Alternatives

The various options or courses of action available to a decision-maker in a decision-making process.

Scenario Planning

A strategic planning method that organizations use to envision and prepare for various future conditions or business environments.

Structured Process

An organized and systematic approach to work or problem-solving, often involving sequential steps and established procedures.

Employee Involvement

The degree to which employees are encouraged to contribute ideas, input, and effort in decision-making processes and operational aspects of their work.