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

question 288

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 March would have been closest to:

• A) $16,200 F
• B) $1,800 U
• C) $16,200 U
• D) $1,800 F

---

Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher known as the father of modern economics and author of "The Wealth of Nations."

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking the alternative action.

Forgone Interest

The potential interest earnings lost by choosing one investment over another or by keeping money in a non-interest-bearing account.

Economic Growth

The increase in the amount of goods and services produced by an economy over time, typically measured as the percent rate of increase in real gross domestic product (GDP).