Given Below Is an Excerpt from a Management Performance Report

question 73

Multiple Choice

Given below is an excerpt from a management performance report for a profit centre: $\begin{array}{llll}&\underline{\text { Budget }}&\underline{\text { Actual }}&\underline{\text {Difference }}\\\text { Contribution margin } & \$ 1,040,000 & \$ 1,020,000 & \$ 20,000 \\\text { Controllable fixed costs } & 430,000 & 420,000 & 10,000\end{array}$

How well did the manager perform overall?

• A)$20,000 below expectations
• B)$40,000 below expectations
• C)equal to expectations
• D)The ROI needs to be known for a total assessment.

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Definitions:

Earnings Levels

Different tiers or amounts of profitability achieved by a business during a specific period.

Ratio of Allowance

A financial metric used to assess the adequacy of an allowance for doubtful accounts or loan losses, often compared to total receivables or loans.

Sales Revenue Approach

A method to recognize revenue based on the sales of goods or services, highlighting the importance of sales activities in generating income for the business.

Unadjusted Year End

The financial figures reported at the end of a fiscal year before any adjustments are made for accruals, deferrals, or other accounting entries.