Jones Company Developed the Following Static Budget at the Beginning

question 115

Multiple Choice

Jones Company developed the following static budget at the beginning of the company's accounting period: $$\begin{array} { l r } \text { Revenue } ( 8,000 \text { units } ) & \$ 16,000 \\\text { Variable costs } & \underline{4,000} \\\text { Contribution margin } & \$ 12,000 \\\text { Fixed costs } & \underline{ 4,000 }\\\text { Net income } & \underline{ \$ 8,000} \\\end{array}$$ If actual production totals 8,200 units,the flexible budget would show total costs of:

• A) $8,000.
• B) $8,100.
• C) $8,200.
• D) None of these are correct.

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Definitions:

Vision

The ability to think about or plan the future with imagination or wisdom; often implies foresight and direction-setting in leadership contexts.

Creativity And Innovation

The process of generating new and novel ideas and turning them into value-creating products, services, or ways of doing things.

Innovation And Vision

The capacity to create novel ideas and the foresight to plan future directions or goals, especially in the context of business or technology.

Vision And Prescient

Describes the ability to have a clear idea about the future or foresee events before they happen.