Onyx Company Has Prepared a Static Budget at the Beginning

question 50

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 fixed expenses.

• A)$4,500 U
• B)$4,500 F
• C)$0
• D)$5,490 F

Understand the ethical principles and core values promoted by the Josephson Institute for Ethics.

Grasp the concept of solicitor-client privilege and the decision-making process in the lawyer-client relationship.

Understand the concept and implications of predatory pricing in market dynamics.

Comprehend the mechanics and legality of tacit and explicit collusion among firms.

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Definitions:

Hostile Attribution Bias

The tendency to interpret others' behaviors as having hostile intent, even when the behavior is ambiguous or benign.

Underlying Defense Mechanism

A subconscious psychological strategy employed to protect a person from anxiety arising from unacceptable thoughts or feelings.

Implicit Assumption

An underlying belief or principle that is accepted without question or evidence.

Hostile Attribution Bias

A cognitive bias leading individuals to interpret others' intentions as malevolent, often in ambiguous situations.