Surf Boards,Inc

question 83

Multiple Choice

Surf Boards,Inc.had the following summarized results for the month ending July 30: As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

• A)The departmental manager is performing to expectations because budgeted income equals actual income.
• B)Revenues are above budget and a bonus based on this increase should be considered.
• C)Costs as a percentage of revenues are above budget and a further scrutiny of the results might be appropriate.
• D)Costs are 17.5% above budget and the department manager's position should be critically evaluated by senior management.

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Definitions:

TIPS Bond

Treasury Inflation-Protected Securities are U.S. government bonds that are indexed to inflation in order to protect investors from the negative effects of rising prices.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and the repayment of the principal.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.