At the End of 2009, SWP Prepared Its Master Budget

question 7

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: The variance for cost of goods sold could be explained by

• A) Actual sales being greater than the budget
• B) Actual sales being less than the budget
• C) Price discounts for purchasing in bulk
• D) Decreases in raw material prices

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Definitions:

Internal Support

Refers to the services and resources within an organization that assist its operations, such as IT support, human resources, and administrative assistance.

Direct Operating Expenses

Costs that can be directly tied to the production or delivery of a company's products or services, excluding overhead or administrative expenses.

Department Manager

A department manager is responsible for overseeing the daily operations, budget, and personnel of a specific department within a company.

Support Department Allocations

The method of distributing the costs of support departments to producing or other service departments that benefit from the activities of the support departments.