An Unfavorable Flexible Budget Variance in Operating Income Might Be

question 63

Multiple Choice

An unfavorable flexible budget variance in operating income might be due to a(n) ________.

• A) increase in sales price per unit
• B) decrease in sales volume
• C) increase in variable cost per unit
• D) decrease in fixed costs

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Definitions:

Bonus

A form of additional compensation given to an employee or workers, above their normal pay, for achieving a certain level of performance or for special occasions.

Commission

A fee paid to an agent or employee for facilitating a sale or transaction, typically calculated as a percentage of the sale.

Car Dealer

An organization that specializes in selling new or pre-owned automobiles directly to consumers, operating under a dealership agreement with a car manufacturer or its sales division.

Strike

A work stoppage initiated by employees to protest against working conditions, wages, or company policies, aiming to pressure the employer into negotiations.