When a Food Distributor Considers Changing the Products It Markets

question 54

Multiple Choice

When a food distributor considers changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America, it is examining the ________ forces at work in the southern United States.

• A) economic
• B) demographic
• C) technological
• D) political
• E) legal

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Definitions:

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level, providing a more useful tool for performance evaluation.

Standard Costs

Predetermined or estimated costs used to compare with actual costs, serving as a financial management tool for analyzing variances.

Sales Variances

The differences between actual sales and budgeted or projected sales, often analyzed to assess performance.

Variable Overhead Cost Variance

The difference between the actual variable overhead costs incurred and the standard costs expected for the actual production level.