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

question 118

Multiple Choice

Use the information below to answer the following question(s) .Bates Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit.
-What is the static-budget variance of revenues?

• A)$50,000 favourable
• B)$50,000 unfavourable
• C)$5,000 favourable
• D)$5,000 unfavourable
• E)$25,000 unfavourable

---

Definitions:

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Automobile Dealership

A business that sells new or used cars at the retail level, based on a dealership contract with an automaker.

Likely Used

Refers to items or methods that are commonly adopted or employed due to their effectiveness or efficiency.

Gross Profit

The amount by which sales revenue exceeds the cost of goods sold, prior to subtracting expenses such as overheads, payroll taxes, and interest.