Prestridge Corporation Is a Service Company That Measures Its Output

question 140

Multiple Choice

Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August.
When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August.
-The spending variance for total expenses for August would have been closest to:

• A) $2,500 U
• B) $2,500 F
• C) $500 F
• D) $500 U

---

Definitions:

Effective Teams

Groups of individuals working together cohesively towards a common goal, characterized by clear communication, mutual respect, and the ability to resolve conflicts constructively.

Teams Competency

Refers to the collective skills, abilities, and expertise that members of a group bring to achieve its objectives.

Organizational Goals

These are strategic objectives that a company aims to achieve; they serve as guiding principles that drive the organization's direction and decision-making processes.

Formal Groups

Groups created with a specific purpose or goal, often within organizational contexts, characterized by structured roles and responsibilities.