In 2010, OSW Budgeted Its Sales Volume at 10,000 Units

question 81

Multiple Choice

In 2010, OSW budgeted its sales volume at 10,000 units. Actual volume was 9,800 units. If OSW uses the static budget to calculate variances and assuming that inventory levels are insignificant, which of the following statements is true?

• A) Profits will be less than expected
• B) Budgeted variable costs will be overstated compared to actual variable costs
• C) Profits will be more than expected due to favorable cost variances
• D) Sales managers will not receive a bonus

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Definitions:

Somatic Pain

Discomfort that arises from ligaments, tendons, bones, blood vessels, and nerves.

Sprained Ankle

An injury involving the stretching or tearing of ligaments around the ankle, often caused by twisting or rolling the foot.

Medical Diagnosis

A diagnosis that refers to disease processes—specific pathophysiological responses that are fairly uniform from one client to another.

Central Sensitization

Prolonged firing of nociceptors with severe and persistent injury, such as surgery, causes dorsal horn spinal cord neurons to become more responsive to all inputs.