A Flexible-Budget Variance Measures the Impact on Short-Term Operating Profit

question 82

Multiple Choice

A flexible-budget variance measures the impact on short-term operating profit of:

• A) Changes in sales volume.
• B) Changes in output during the period.
• C) Differences in sales mix—budgeted versus actual.
• D) Selling price and cost differences—actual versus budgeted.
• E) Selling price, but not cost, differences—actual versus budgeted.

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Definitions:

Market Opportunities

Circumstances or conditions in the market that a business can exploit to its advantage, such as gaps in the existing market or emerging trends.

Long-Term Growth

A strategic objective focused on increasing a company's market share, revenue, and profitability over an extended period, beyond immediate or short-term gains.

Marketing Plan

A comprehensive document or blueprint that outlines a company's advertising and marketing efforts for the coming period, detailing specific actions to achieve marketing objectives.

Modifications

Changes or alterations made to a product or service, often aimed at enhancing its performance, appearance, or functionality.