Global Engineering's Actual Operating Income for the Current Year Is

question 16

Multiple Choice

Global Engineering's actual operating income for the current year is $57,000.The flexible budget operating income for actual sales volume is $32,000,while the static budget operating income is $56,000.What is the sales volume variance for operating income?

• A) $24,000 favorable
• B) $1,000 unfavorable
• C) $24,000 unfavorable
• D) $1,000 favorable

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Definitions:

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares held by company insiders.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, by comparing current assets to current liabilities.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Accounts Receivable Turnover

A financial ratio indicating how efficiently a company collects its receivables or the credit it extends to customers.