At the End of 2009, SWP Prepared Its Master Budget

question 72

Multiple Choice

At the end of 2009, SWP prepared its master budget for 2010. Selected amounts from that budget, along with actual results for 2010, are presented below: Which items in the table have unfavorable variances?

• A) Marketing expense and cost of goods sold
• B) Cost of goods sold and sales
• C) Interest revenue and research and development expense
• D) Interest revenue and cost of goods sold

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Definitions:

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Premises Rule

A legal principle governing liability and responsibility within the boundaries of a property.

Back Injury

A physical harm or damage to the back, which may include muscles, bones, or nerves of the back.

Company Property

Company property consists of all physical and intellectual assets owned by a business, including buildings, equipment, trademarks, and patents.