Answer the Following Questions Using the Information Below:
as Part

question 205

Multiple Choice

Answer the following questions using the information below:
As part of the budgeting process,Garden Gnomes Incorporated had developed the following static budget for the third quarter.Garden Gnomes is in the process of preparing the flexible budget and understanding the results.The actual information relates to the third quarter.
$\begin{array}{lrlr}&\text { Actual } & \text { Flexible } & \text { Static } \\&\text { Results } & \text { Budget } & \text { Budget }\\\text { Sales volume (in units) } & 13000 & \underline{\quad\quad} & 12000 \\& & & \\\text { Sales revenues } & \$ 257500 & \$ &\$ 250000 \\\text { Variable costs } & 154000 & \$\underline{\quad\quad} &\underline{180000} \\ & & & \\\text { Contribution margin } & 103500 & \$ & 70000 \\& & & \\\text { Fixed costs } & 50500 & \$\underline{\quad\quad} & 49500 \\\text { Operating profit } & \$ 53000 & \$\underline{\quad\quad} & \$ 20500\end{array}$

-The variance that is BEST for measuring operating performance is the:

• A)flexible-budget variance.
• B)sales-volume variance.
• C)selling-price variance.
• D)static-budget variance.

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Definitions:

Nervous System

The complex network of nerves and cells that transmit signals between different parts of the body, facilitating bodily functions and responses to the environment.

Depressants

A category of drugs that decrease activity in the central nervous system, slow down bodily functions, and reduce sensitivity to outside stimulation; also called “downers.”

Kidney Functioning

The process by which the kidneys filter and remove waste products and excess fluids from the blood, while also regulating electrolyte balance and blood pressure.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, typically measured for diagnosis since it is closely related to the force and rate of the heartbeat and the diameter and elasticity of the arterial walls.