Identify Which of the Statements Below Is Not a Reason

question 114

Multiple Choice

Identify which of the statements below is not a reason why actual results would differ from those projected in the master budget.

• A)Current period projected sales volume differed from the prior period projection.
• B)Actual sales volume differed from projected sales volume.
• C)Variable costs per unit differed from expected amounts.
• D)Actual fixed costs were different than expected.

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Definitions:

Marketing Costs

Expenses related to promoting and selling products or services, including advertising, product promotion, and sales force expenses.

Design Costs

The expenses associated with the conceptualization and development phases of product creation, including research, design, and prototyping.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the invention of new products and procedures.

Proration

The allocation of costs or revenues among departments, products, or periods based on a fair and equitable basis.