Given Below Is an Excerpt from a Management Performance Report

question 58

Multiple Choice

Given below is an excerpt from a management performance report: $\begin{array}{llll}&\text { Budget }&\text { Actual }&\text { Difference }\\\text { Contribution margin } & \$ 600,000 & \$ 580,000 & \$ 20,000 \mathrm{U} \\\text { Controllable fixed costs } & \$ 200,000 & \$ 220,000 & \$ 20,000 \mathrm{U}\end{array}$ The manager's overall performance

• A)is 10% above expectations.
• B)is 10% below expectations.
• C)is equal to expectations.
• D)cannot be determined from the information provided.

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Definitions:

Necessary Risks

Risks that are considered essential to take in pursuit of achieving objectives, innovation, or staying competitive in business.

Entrepreneurs

Individuals who create, organize, and operate businesses, taking on greater than normal financial risks in order to do so.

Business Ownership

The legal possession or control of a business, which may come in various forms like sole proprietorship, partnership, or corporation.

Entrepreneur

An individual who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.