Fact Pattern 14-4

question 60

Multiple Choice

Fact Pattern 14-4
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 14-4. If bad weather destroys Flora's crops, the obliga?tion to deliver produce to Harvesters is most likely

• A) breached.
• B) discharged.
• C) not affected.
• D) suspended.

Understand the implications of budget variances on net operating income.

Distinguish between planning and flexible budgets, and their respective roles in financial planning.

Identify and calculate the components of a flexible budget, including direct materials, wages, expenses, and revenues.

Evaluate the performance of a business using flexible budget analysis.