Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 29

Multiple Choice

Use the information below to answer the following questions. $\begin{array}{llc}&\text { Flexed Budget for April }&\text { Actual for April }\\\text { Output } & 40,000 \text { units } & 40,000 \text { units } \\\text { Sales } & \$ 500,000 & \$ 400,000 \\\text { Raw materials } & \$ 100,000 & \$ 88,000 \\\text { Labour } & \$ 250,000 & \$ 180,000 \\\text { Overheads } & \$ 325,000 & \$ 375,000\end{array}$
-Refer to the table above. The adverse (unfavourable) sales variance of $100,000 is best explained by:

• A)a decrease in price of the units sold.
• B)the sales manager failing to sell the budgeted units.
• C)an increase in expenses.
• D)none of the above.

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Definitions:

Categorical Information

Data or facts organized into groups or categories for ease of understanding or processing.

Dimensional Information

Data or details that pertain to the size, shape, or measurable aspects of objects or phenomena.

Convergent Validity

A measure of validity based on the extent to which a test correlates with other measures that it is theoretically expected to correlate with.

Consistency

The quality of always behaving or performing in a similar way, maintaining a uniform approach across different situations.