The Cellular Phone Division of Stegall Company Had Budgeted Sales

question 44

Multiple Choice

The cellular phone division of Stegall Company had budgeted sales of $950,000 and actual sales of $900,000.Budgeted expenses were $600,000,while actual expenses were $550,000.Based on this information,the responsibility report for the manager of this profit center would show:

• A) A favorable revenue variance.
• B) A favorable cost variance.
• C) Both a favorable revenue variance and a favorable cost variance.
• D) None of these answers are correct.

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Definitions:

Demand Curve

An illustration that depicts the inverse relationship between the price of an item and the quantity demanded by consumers within a certain period.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to lenders or investors.

Investment

The process of spending money to purchase assets with the expectation of generating future profits or income.

Public Saving

The difference between the government's tax revenues and its spending, excluding debt interest.