Below Is a Performance Report That Compares Budgeted and Actual

question 128

Multiple Choice

Below is a performance report that compares budgeted and actual profit of Atlanta Enterprises for the month of June: $\begin{array}{lccr} & \text { Budget } & \text { Actual } & \text { Difference } \\\text { Sales } & \$ 182,000 & \$ 180,000 & (\$ 2,000) \\\text { Less: } & & &\\\text { Cost of ingredients } & 145,000 & 141,000 & 4,000 \\\text { Salaries } & \underline{24,000} & \underline{23,000} & \underline{1,000}\\\text { Controllable profit }&\$ 13.000 & \$ 16.000 & \$ 3,000\end{array}$ 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

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