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:

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since its acquisition, reflecting its loss in value over time.

Special Price

A temporary discounted offer on a product or service intended to attract customers or accelerate sales.

Plant Capacity

The maximum output that a manufacturing facility can produce under normal working conditions.