If the Variable Selling and Administrative Expenses Totaled $120,000 for the Year

question 130

Multiple Choice

If the variable selling and administrative expenses totaled $120,000 for the year (80,000 units at $1.50 each) and the planned variable selling and administrative expenses totaled $136,500 (78,000 units at $1.75 each) , the effect of the unit cost factor on the change in contribution margin is:

• A) $19,500 decrease
• B) $19,500 increase
• C) $20,000 decrease
• D) $20,000 increase

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Definitions:

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish and measure the performance against strategic goals.

Financial Measures

Quantitative indicators used to assess the financial health, performance, and stability of a business or project.

Customer Measures

These are metrics used by companies to assess satisfaction, loyalty, and experience from the customer's perspective.

Learning And Growth

A perspective within the Balanced Scorecard approach focusing on employee training and development, for the purpose of improving internal processes and innovation.