Which of the Following Will Not Result in an Unfavorable

question 105

Multiple Choice

Which of the following will not result in an unfavorable controllable margin difference?

• A) Sales exceeding budget; costs under budget
• B) Sales exceeding budget; costs over budget
• C) Sales under budget; costs under budget
• D) Sales under budget; costs over budget

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Definitions:

Marketing Manager

A professional responsible for developing strategies to promote a product, service, or brand to increase sales.

Advertising Budget

An estimate of a company's promotional expenditures over a period. It includes costs related to advertising through various media channels.

Net Operating Income

The profit generated from a company's normal business operations, excluding expenses and revenues that are outside its core business activities.

Contribution Format

is a profit reporting format that separates fixed and variable costs, highlighting the contribution margin which helps in decision-making.