If Actual Fixed Overhead Was $54,000 and There Was a $1,300

question 44

Multiple Choice

If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been

• A) $56,300.
• B) $50,300.
• C) $53,000.
• D) $52,700.

Recognize the role of environmental analysis in strategic planning.

Comprehend the ethical considerations in management and the impact of ethical leadership.

Identify opportunities arising from sociocultural trends for small businesses.

Understand the importance of a mission statement and strategic objectives in guiding organizational actions.

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Definitions:

Company Finance

An area of finance dealing with the sources of funding and the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Company Assets

Resources owned by a company that have economic value and can contribute to future profits, such as cash, inventory, and equipment.

Profitability

A measure of the efficiency of a company in generating profit relative to its revenue, costs, and investments.