Answer the Following Questions Using the Information Below

question 91

Multiple Choice

Answer the following questions using the information below:
Caan Corporation used the following data to evaluate their current operating system. The company sells items for $20 each and used a budgeted selling price of $20 per unit.

-What is the static-budget variance of revenues?

• A)$60,000 favorable
• B)$60,000 unfavorable
• C)$6,000 favorable
• D)$6,000 unfavorable

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Definitions:

Referent Power

A form of influence where a person elicits compliance or admiration from others based on charisma or personal traits rather than formal authority.

Legal-Rational

A form of authority based on established laws, rules, and procedures that are designed to be objective and impersonal.

Traditional Power

Power that is derived from established customs, practices, or institutions historically recognized within a society or organization.

Charismatic Power

Influence derived from an individual's charm and appeal, which can inspire devotion and enthusiasm in others.