The Octova Corporation Manufactures Two Types of Vacuum Cleaners: the ZENITH

question 57

Essay

The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2017 are as follows:

Required:
a.Calculate the contribution margin for the flexible budget.
b.Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

Grasp the importance and application of financial statement analysis in making informed business decisions.

Identify the common tools of financial analysis such as ratio, horizontal, and vertical analysis.

Recognize the composition and importance of a financial statement analysis report including its key sections like executive summary, analysis overview, and assumptions.

Distinguish between internal and external users of financial information and their respective needs.

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Definitions:

Listening Process

The active engagement in hearing and attempting to comprehend and interpret the messages communicated by others.

Proxemics

The study of how humans use space and distance as a means of nonverbal communication.

Chronemics

The study of how time is used in communication and how it affects interactions.

Haptics

The study and use of touch as a means of communication, including gestures, body language, and the texture of materials.