Onyx Company Has Prepared a Static Budget at the Beginning

question 145

Multiple Choice

Onyx Company has prepared a static budget at the beginning of the month. At the end of the month, the following information has been retrieved from the records. Static budget:
Sales volume: 1,000 units: Price: $70 per unit
Variable expense: $32 per unit: Fixed expenses: $37,500 per month
Operating income: $500
Actual results:
Sales volume: 990 units: Price: $74 per unit
Variable expense: $35 per unit: Fixed expenses: $33,000 per month
Operating income: $5,610
Calculate the flexible budget variance for Sales Revenue.

• A)$5,490 U
• B)$5,490 F
• C)$3,960 U
• D)$3,960 F

Analyze the concept of project management and its techniques.

Distinguish between different types of control systems and their applications in business.

Understand the components and significance of a balanced scorecard in measuring organizational performance.

Calculate key financial metrics such as net income, return on equity, and asset turnover to assess company performance.

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Definitions:

Bad Debts Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect.

Uncollectible Accounts

Refers to receivables that are deemed unlikely to be collected, indicating potential losses for a company.

Allowance for Doubtful Accounts

An accounting provision made by a company to account for accounts receivable that might not be collected.

Bad Debts Expense

Financial accounting charge for accounts receivable that a company does not expect to collect.