Montaigne Corp

question 47

Multiple Choice

Montaigne Corp.has the following information about its standards and production activity for November.The controllable variance is:

• A)$1,295U.
• B)$1,295F.
• C)$2,400U.
• D)$2,400F.
• E)$3,695U.

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Definitions:

Net Income

A company's final earnings following the deduction of all expenses and taxes from its revenues.

Net Cash Flow

The difference between cash inflows and outflows in a given period, indicating the liquidity position of a business.

Depreciation Expense

The amount of the cost of a tangible asset that is allocated as an expense over its useful life.

Gain

The financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.