Ryota Products Has an Industrial Mower Division That Operates as a Profit

question 21

Multiple Choice

Ryota Products has an industrial mower division that operates as a profit center.Below is a partially completed responsibility report for the first quarter. Compute the percentage variance for the flexible budget variance for traceable fixed expenses.(Round your answer to two decimal places.)

• A) 0.81% F
• B) 0.81% U
• C) 1.10% U
• D) 1.10% F

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Definitions:

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis rather than after each transaction.

Net Method

An accounting method for recording purchases where the purchase price includes a cash discount for early payment, emphasizing the net price as the expected payment amount.

Credit Terms

The conditions under which credit will be extended to a borrower, including the repayment schedule, interest rate, and any other terms and conditions.

Periodic Inventory System

A method of accounting for inventory where updates to the inventory records are made periodically, typically at the end of an accounting period, rather than after each transaction.