The Following Is Extracted from a Budgetary Control Statement of a Manufacturing

question 13

Multiple Choice

The following is extracted from a budgetary control statement of a manufacturing firm:

Which of the following explanations best describe the possible reason(s) for the variance?

• A) Prices are lower than originally expected
• B) Efficient purchasing
• C) Prices are lower than originally expected and the purchasing was efficiently carried out
• D) Discounts were taken

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Definitions:

Variable Costs

Expenses that change in proportion to the activity or volume of a business.

Brand Equity

The value and strength of a brand that is determined by consumer perception, recognition, and loyalty.

Stakeholder Orientation

An approach in business where a company takes into account the interests and concerns of all parties affected by its operations, including customers, employees, shareholders, and the community.

Secondary Stakeholders

Individuals or groups indirectly affected by a project's outcome or business operations, unlike primary stakeholders who are directly impacted.