Use the Information Below to Answer the Following Question(s)

question 1

Multiple Choice

Use the information below to answer the following question(s) .Ames Golf Company used the following data to evaluate their current operating system.The company sells 1 pack of golf balls for $10 per pack.The $10 selling price is also the budgeted selling price.
-What is the total static budget variance for Ames Golf Company?

• A)$650,000 favourable
• B)$450,000 unfavourable
• C)$400,000 favourable
• D)$390,000 unfavourable
• E)$350,000 favourable

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Definitions:

Operating Income

The profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Inventory Turnover

A financial ratio that measures the number of times a company’s inventory is sold and replaced over a specific period, reflecting the efficiency of inventory management.

Cost of Goods Sold

Cost of Goods Sold (COGS) is an accounting term representing the direct expenses related to the production of items sold by a company, including materials and labor.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or within the business's operating cycle, whichever is longer.