Rockland Heavy Industries Has a Sales Division That Focuses on Power

question 51

Multiple Choice

Rockland Heavy Industries has a sales division that focuses on power cranes. The sales division is a revenue center. Below is a partially completed performance report for the month of June. $$\begin{array}{l}\text { Revenue Center Performance Report - \$K }\\\begin{array} { | l | r | c | c | c | c | c | c | } \hline & { \text { Actual } } & \text { Flexible Budget } & & \text { Flexible } & \text { Sales Volume } & & \text { Static } \\\hline \text { Product type: } & \text { Sales Revenue } & \text { Variance } & \text { U/F } & \text { Budget } & \text { Variance } & \text { U/F } & \text { Budget } \\\hline \text { Lightweight } & \$ 10,900 & & & \$ 11,000 & & & \$ 10,000 \\\hline \text { Heavyweight } & \$ 9,120 & & & \$ 9,000 & & & \$ 10,000 \\\hline \text { Green model } & \$ 6,100 & & & \$ 8,000 & & & \$ 7,000 \\\hline \text { Extended length } & \$ 5,100 & & & \$ 5,000 & & & \$ 5,000 \\\hline\end{array}\end{array}$$ Rockland uses management by exception to investigate flexible budget variances. On which of the following variances would they focus first for investigation?

• A) Lightweight
• B) Heavyweight
• C) Green model
• D) Extended length

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Definitions:

Achievement Behavior

Actions aimed at accomplishing tasks and attaining goals, often motivated by personal standards of excellence.

Social Anxiety

A form of anxiety that affects people in social situations, where they may feel excessively self-conscious, judged, or fearful of being embarrassed.

Dispositional Optimism

A general expectation that good things will happen, reflecting a tendency to maintain a positive outlook.

Health

The state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.