Answer the Following Questions Using the Information Below:
as Part

question 24

Multiple Choice

Answer the following questions using the information below:
As part of the budgeting process,Lillee's Petanque Company developed the following static budget for August.Lillee is in the process of preparing the flexible budget and understanding the results.The actual results are for the month of August.
$\begin{array}{lrlr}&\text { Actual } & \text { Flexible } & \text { Static } \\&\text { Results } & \text { Budget } & \text { Budget }\\\text { Sales volume (in units) } & 20000 &\underline{\quad\quad} & 25000 \\& & & \\\text { Sales revenues } & \$ 1000000 & \$ & \$ 1250000 \\\text { Variable costs } & \underline{512000} & \$ \underline{\quad\quad}& \underline{600000} \\& & & \\ \text { Contribution margin } & 488000 & \$ & 650000 \\& & &\\\text { Fixed costs } & 458000 & \$ \underline{\quad\quad}& 450000 \\\text { Operating profit } & \$ 30000 & \$ \underline{\quad\quad}& \$ 200000\end{array}$
-The PRIMARY reason for low operating profits was:

• A)increased fixed costs.
• B)the variable-cost variance.
• C)a poor management accounting system.
• D)lower sales volume than planned.

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Definitions:

Managing Change

The process of overseeing transitions or transformations within an organization to achieve desired outcomes.

Change Process

Involves the steps or actions undertaken by an organization to move from its current state to a desired future state, often requiring planning, implementation, and monitoring.

Workforce Diversity

The inclusion of a wide range of differences among employees in an organization, including ethnicity, gender, age, sexual orientation, and cultural background.

Globalization

The way in which corporations or different organizations gain international prominence or commence operations across the globe.