Exhibit 37-1 Refer to Exhibit 37-1, Where the Higher the Number, the the Number

question 50

Multiple Choice

Exhibit 37-1
Refer to Exhibit 37-1, where the higher the number, the better the position for the person to whom the number is connected.  Jaden and Karen have entered into an agreement and are currently in box 1.  There is no enforcer to their agreement.  Jaden and Karen are likely to

• A)remain in box 1.
• B)move to box 2, because this box is better for Jaden.
• C)move to box 3, because this box is better for Karen.
• D)move to box 4.
• E)There is not enough information to answer the question.

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Definitions:

Revenue Variances

The differences between actual revenue generated and the expected (or budgeted) revenue over a specific period.

Spending Variances

Differences between the budgeted or standard cost of production and the actual cost incurred.

Customers Served

The number of clients or customers who have purchased a company's goods or services within a specific time frame.

Flexible Budget

A budget which is predisposed to adjust when there are changes in the magnitude of operations or activity levels.