Prestridge Corporation Is a Service Company That Measures Its Output

question 272

Multiple Choice

Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August.The activity variance for total expenses for August would have been closest to:

• A) $3,000 U
• B) $2,500 F
• C) $3,000 F
• D) $2,500 U

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Definitions:

Direct Foreign Aid

Financial or material assistance provided by one country to another, often in the form of grants or loans, to support the receiving country's development projects or economy.

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and a low Human Development Index (HDI) relative to other countries.

Vicious Circle

A complex chain of events that reinforces itself through a feedback loop, leading to a negative or undesirable outcome.

Foreign Aid Methods

Various strategies or approaches for providing assistance to countries and communities in need, including grants, loans, and technical support.