Answer the Following Questions Using the Information Below

question 174

Multiple Choice

Answer the following questions using the information below:
Bowden 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 variable costs?

• A)$1,200 favorable
• B)$9,400 unfavorable
• C)$20,000 favorable
• D)$1,200 unfavorable

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Definitions:

Buying Decision

The process by which a consumer decides whether or not to purchase a product or service, often influenced by factors such as need, desire, and budget.

Basic Steps

Fundamental stages or actions that are involved in a process or procedure.

Limited Decision Making

Decision-making characteristic of a buyer who invests a moderate level of energy in the decision to buy because, although the buyer is not familiar with each brand’s features, advantages, and benefits, the general quality of the good is known to him or her.

Buying

The act of acquiring goods or services in exchange for money.