The Carolina Products Company Has Just Completed a Flexible Budget

question 124

Multiple Choice

The Carolina Products Company has just completed a flexible budget analysis of 2^nd quarter operating income, as shown here: Based on the above data, which of the following statements would be a correct interpretation of the flexible budget variance for fixed expenses?

• A)Decrease in price per unit
• B)Increase in variable cost per unit
• C)Increase in sales volume
• D)Increase in fixed costs

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Definitions:

Reinforcement Theory

A psychological theory suggesting that behavior can be shaped by controlling the consequences of that behavior, emphasizing the use of reinforcement, punishment, or extinction to influence workplace behavior.

Expectancy Theory

A psychological theory that postulates an individual's motivation is an outcome of their expectations about their ability to achieve desired performance levels and the perceived rewards for doing so.

Maslow's Theory

Maslow's Theory, or Maslow's Hierarchy of Needs, is a psychological concept that arranges human needs into a hierarchy, suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Organizational Citizenship

The voluntary commitment of employees to go beyond their contractual tasks and contribute positively to the organization's culture and business processes.