-The Variance for Net Operating Income in the Revenue and Spending

question 231

Multiple Choice

-The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for August would have been closest to:

• A) $4,100 U
• B) $4,100 F
• C) $1,100 U
• D) $1,100 F

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Definitions:

Stock Index Futures

Futures contracts where the underlying asset is a stock market index, used for speculation or hedging against market movements.

Multiplier

In economics and finance, a factor that quantifies the impact of an increase in spending or investment on the overall income or output of an economy, often used to measure the effects of fiscal policy.

Dollars

The official currency of the United States, used as a standard monetary unit.

Annual Risk-free Rate

The theoretical rate of return of an investment with zero risk over a one-year period, often represented by government bonds.