The Carolina Products Company Has Just Completed a Flexible Budget

question 97

Multiple Choice

The Carolina Products Company has just completed a flexible budget analysis of 2^nd quarter operating income, as shown here:

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Based on the above data, which of the following statements would be a correct interpretation of the sales volume variance for operating income?

• A) Decrease in price per unit
• B) Increase in variable cost per unit
• C) Increase in sales volume
• D) Increase in fixed costs

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Definitions:

Generalized

A concept or conclusion extended from specific examples to broader contexts; making general assumptions or predictions based on limited data.

Targeted

Directed or aimed at a specific object, group, or goal.

Job Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged stress and frustration at the workplace.

Mental Exhaustion

A state of extreme fatigue resulting from mental effort or stress, often reducing productivity and motivation.