The Actual Information Pertains to the Third Quarter

question 132

Multiple Choice

The actual information pertains to the third quarter. As part of the budgeting process, the controller for Foley Manufacturing had developed the following static budget for the third quarter. The company is in the process of preparing the flexible budget and understanding the results.

The primary reason for high actual operating profits was ________.

• A) the variable-cost variance
• B) increased fixed costs
• C) flexible budget variance for revenues
• D) lower sales volume than planned

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Definitions:

Drugs

Substances used to diagnose, treat, or prevent illness and affect the body's structure or functions.

Posttraumatic Stress Disorder

A mental health condition that's triggered by a terrifying event, either experiencing it or witnessing it, leading to persistent frightening thoughts and memories of the ordeal.

War Veterans

Individuals who have served in the military and are recognized for their service during times of war or conflict.

Depressed Adolescents

Young individuals, typically in the teenage years, who are experiencing major depressive disorder, affecting their mood and daily functioning.