The Sales Revenue Flexible Budget Variance Was:
A) $15,000 Unfavorable

question 69

Multiple Choice

$$\begin{array} { l r c } \text { Item to Classify } & \text { Starddard } & \text { Actual } \\\text { Sales Reveruse } & 820,000 & 835,000 \\\text { Wages } & 125,000 & 128,000 \\\text { S\&A Expenses } & 400,000 & 408,000 \\\text { Cost of Goods Sold } & 608,000 & 600,000\end{array}$$ The sales revenue flexible budget variance was:

• A) $15,000 unfavorable.
• B) $7,000 favorable.
• C) $15,000 favorable.
• D) $7,000 unfavorable.

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Definitions:

Sales Forecast

The process of estimating future sales. Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance.

Holt-Winters Additive Model

A forecasting technique that captures seasonality, trend, and level in time series data, adding them together for prediction.

Exponential Smoothing

It is a rule of thumb technique for smoothing time series data using the exponential window function.

Additive Model

A statistical model where the effect of variables is linear and additive, assuming each variable contributes a separate and additive amount to the final outcome.