The Trend Analysis Report of Doppler Inc Which of the Following Is a Correct Conclusion from the \begin{array}

question 20

Multiple Choice

The trend analysis report of Doppler Inc. is given below: $$\begin{array} { | l | r | r | r | r | r | } \hline \text { In millions) } & 2017 & 2016 & 2015 & 2014 & 2013 \\\hline \text { Net income } & \$ 650 & \$ 602 & \$ 456 & \$ 403 & \$ 398 \\\hline \text { Trend percentages } & 163 & 151 & 115 & 101 & 100 \\\hline\end{array}$$ Which of the following is a correct conclusion from the above analysis?

• A) Net income for the year 2016 is 151% of that for the year 2013.
• B) Net income for the year 2016 is 151% of previous year.
• C) Net income for the year 2016 decreased by 151% from 2015.
• D) Net income for the year 2017 increased by 163% from 2016.

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Definitions:

Materials Price Variance

The discrepancy between the real expense of direct materials employed in manufacturing and the anticipated standard expense for those materials.

Materials Quantity Variance

The difference between the budgeted and actual quantities of materials used in production, affecting cost management.

Standard Cost

A predetermined cost of manufacturing, calculated based on the expected costs of material, labor, and overhead for a unit of product.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, reflecting changes in material prices.