Lincoln Corporation Used the Following Data to Evaluate Their Current

question 26

Multiple Choice

Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $18 each and used a budgeted selling price of $18 per unit.

What is the static-budget variance of variable costs?

• A) $6,000 favorable
• B) $11,000 unfavorable
• C) $14,000 favorable
• D) $5,000 unfavorable

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Definitions:

Management Levels

The different tiers of management within an organization, typically including top-level, middle-level, and lower-level management, each with specific responsibilities.

Decentralization

The distribution of decision-making powers away from a central authority to lower levels in an organization.

Franchise

The right or license granted to an individual or group to market a company’s goods or services.

License

A legal authorization allowing an individual or entity to use a piece of property or engage in a particular activity or business.