The Following Data Are for Sponge Corporation: Flexible Budget For \begin{array}{llll}

question 4

Multiple Choice

The following data are for Sponge Corporation: Flexible Budget for
$\begin{array}{llll}&& \text { Master } & \text { Actual Sales } \\&\text { Actual } & \text { Budget } & \text { Activity }\\\text { Units } & \underline{18,000} & \underline{16,000} & \underline{18,000} \\\text { S ales } & \$ 360,000 & \$ 320,000 & \$ 360,000 \\\text { Variable costs } & 234,000 & 192,000 & 216,000 \\\text { Contribution } & \$ 126,000 & \$ 128,000 & \$ 144,000 \\\text { margin }\\\text { Fixed costs } &76,000 & \$ 80,000 & \$ 80,000\\\text { Operating income } &\$ 50,000&\$ 48,000&\$64,000\\\end{array}$ The total of the sales- activity variances is:

• A) $16,000 unfavorable
• B) $14,000 unfavorable
• C) $16,000 favorable
• D) $14,000 favorable

Comprehend the significance of aligning core values with organizational actions and communication to stakeholders.

Recognize the role of mission statements, visions, and business models in defining organizational direction and strategies.

Understand the importance and nature of business objectives and goals, including their specificity and time-bound nature.

Grasp the concept of a business model and its importance in providing value and adapting to changes in the market environment.

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Definitions:

Methods

Different ways or strategies of accomplishing a task or solving a problem.

Mechanistic

An organizational structure that is hierarchical and bureaucratic, with clear lines of authority, formal rules, and procedures.

Specialization

The process of focusing one's skills or resources on a specific field or area of expertise, leading to increased efficiency and knowledge.

Formalized

The process of establishing certain procedures or behaviors in a structured and officially sanctioned manner.