Given the Following Data: GDP = $5,200; NI = $4,700;

question 34

Multiple Choice

Given the following data: GDP = $5,200; NI = $4,700; PI = $4,300; indirect business taxes net of subsidies = $300; depreciation equals

• A)-$600
• B)-$200
• C)$200
• D)$600
• E)$1,200

Determine and analyze spending variances in flexible budget performance reports.

Calculate the variance for net operating income and interpret its financial meaning.

Analyze the impact of activity levels on budget planning and performance evaluations.

Understand the difference between favorable and unfavorable variances and their significance.

---

Definitions:

Job Evaluation

The systematic process for assessing the relative worth of jobs within an organization to establish a fair and equitable pay structure.

Pay for Knowledge

A compensation system where employees are paid based on the range and depth of their skills and knowledge, rather than strictly on their job position or seniority.

Performance Pay

Compensation model where employees are rewarded based on their job performance, including quality and efficiency, often used as an incentive to enhance productivity.

Compensation Mechanism

A system or method used to determine and distribute salary, benefits, and other forms of pay to employees in exchange for their work.