Assume That Actual Sales Results Exceed the Planned Results for the Second

question 147

Multiple Choice

Assume that actual sales results exceed the planned results for the second quarter. This favorable difference is greater than the unfavorable difference reported for the first quarter sales. Which of the following statements about the sales budget report on June 30 is true?

• A) The year-to-date results will show a favorable difference.
• B) The year-to-date results will show an unfavorable difference.
• C) The difference for the first quarter can be ignored.
• D) The sales report is not useful if it shows a favorable and unfavorable difference for the two quarters.

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