In Analyzing Company Operations,the Controller of the Jason Corporation Found

question 41

Multiple Choice

In analyzing company operations,the controller of the Jason Corporation found a $250,000 favorable flexible budget revenue variance.The variance was calculated by comparing the actual results with the flexible budget.This variance can be wholly explained by: (CMA adapted)

• A)the total flexible budget variance.
• B)the total static budget variance.
• C)changes in unit selling prices.
• D)changes in the number of units solD.Since the flexible budget is based on actual output,the variation could only come from the selling price.

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Definitions:

Buyers

Individuals or entities that procure goods or services in exchange for payment.

Security Interest

A legal claim or right granted over assets to secure the performance of an obligation or the payment of a debt.

Title

A legal term referring to the rightful ownership of property, including the rights to use, possess, and transfer the property.

Shipped Goods

Items that are transported from one location to another, typically through the mail or a delivery service.