Zhongfang Consumer Products Has a Small Car Division That Operates

question 41

Multiple Choice

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. $$\begin{array} { | l | r | r | r | r | r | l | } \hline & & & \text { Flexible Budget } & & & \\\hline & { \text { Actual } } & \text { Flexible Budget } & \text { Variance } & \text { U/F } & \text { \% variance } & \text { U/F } \\\hline \text { Sales Revenue } & \$ 688,000 & \$ 700,000 & & & & \\\hline \text { Variable expenses } & 309,000 & 320,000 & & & & \\\hline \text { Contribution margin } & 379,000 & 380,000 & & & & \\\hline \text { Traceable fixed expenses } & 371,000 & 368,000 & & & & \\\hline \text { Division margin } & \$ 8,000 & \$ 12,000 & & & & \\\hline\end{array}$$
-How much is the percentage variance for sales revenue?

• A) 1.7 % F
• B) 1.7 % U
• C) 3.4 % U
• D) 3.4 % F

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Definitions:

Ambushing

A tactic in communication or debate where one listens to the speaker with the intent to attack or counter their arguments rather than to understand.

Attribution Distortion

The tendency to inaccurately attribute causes or reasons to behaviors or events often leading to biased judgment.

Self-Preoccupation

An excessive focus on oneself and one's own needs, often at the expense of others.

Defensiveness

A psychological reaction that occurs in response to perceived threats to one's self-esteem or self-concept.