At the End of February,Brayden Pty Ltd Reviewed Its Performance

question 42

Multiple Choice

At the end of February,Brayden Pty Ltd reviewed its performance for the month and noted the following:
$\begin{array}{|l|r|r|}\hline \text{ Account } & \text{ Budget } & \text{ Actual } \\\hline \text{ Sales }& \$ 125000 & \$ 132000 \\\hline\text{ Advertising expense} & \$ 5000 &\$ 3800\\\hline\text{ Wages expense }&\$ 12000 &\$ 13500 \\\hline\end{array}$
The respective variances will be reported as:

• A) $7000 U, $1200 U, $1500 F.
• B) $7000 F, $1200 F, $1500 U.
• C) $7000 U, $1200 F, $1500 U.
• D) $$7000 F, $1200 U, $1500 U.

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Definitions:

Expand

To increase in size, number, or importance, often relating to businesses aiming to grow through increased operations, product lines, or market reach.

Equilibrium

The condition that exists when quantity supplied and quantity demanded are equal. At equilibrium, there is no tendency for price to change.

Incentive

A factor, often financial, that motivates individuals or organizations to perform certain actions or behave in a desired way.

Long Run

A period in economics sufficient for all adjustments to be made, including physical capital and not just prices.