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:

Political Factors

External Factors Including Labor Laws, Property Rights, and Patent Processes.

Economic Factors

External factors including the strength or weakness of markets, stability of trade cycles, specific industry conditions, customer preferences, and government’s economic policies.

Labor Laws

Regulations and laws that govern the rights and responsibilities of workers, employers, and labor unions to ensure fair employment practices.

Political Factors

Elements related to government actions, policies, and political stability that can influence business operations and decisions.