Use the Information Below to Answer the Following Question(s)

question 44

Multiple Choice

Use the information below to answer the following question(s) .Bates Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit.
-What is the static-budget variance of variable costs?

• A)$200,000 favourable
• B)$50,000 unfavourable
• C)$50,000 favourable
• D)$250,000 unfavourable
• E)$250,000 favourable

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Definitions:

Net Income

The company's earnings following the deduction of all costs, taxes, and expenses from the overall income.

FVTOCI Investments

Financial assets classified as fair value through other comprehensive income; adjustments to their fair value don't affect profit or loss but other comprehensive income.

IFRS 9

An International Financial Reporting Standard that deals with the accounting for financial instruments, covering the classification, measurement, and recognition of financial assets and liabilities.

Accumulated Other Comprehensive Income

Represents the total of all unrealized gains and losses that are not included in net income but affect shareholders' equity.