Answer the Following Questions Using the Information Below

question 8

Multiple Choice

Answer the following questions using the information below:
The Sasita Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences.Budgeted and actual operating data for the year 2019 were as follows:
Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.
-What is the market-size variance?

• A)$1,152,000 F
• B)$108,000 F
• C)$360,000 U
• D)$1,260,000 F
• E)$96,000 F

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Definitions:

Average Collection Period

The average number of days it takes for a business to collect its accounts receivable.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales on Account

Transactions in which revenue is accounted for at the time of sale, but payment is deferred to a later date.

Operating Cycle

The period between the acquisition of inventory and the collection of cash from receivables, indicating the efficiency of a company's operations.