The Fixed Budget Performance Report of Discount Sale Pty Ltd

question 35

Multiple Choice

The fixed budget performance report of Discount Sale Pty Ltd for the year ended 30 June 2011 shows budgeted manufacturing costs of $420 000 and actual manufacturing costs of $370 000.The favourable variance of $50 000 must have been due to:

• A)Cost factors
• B)Poor budgeting
• C)Lack of supervision of workers
• D)Cannot be determined from the information provided

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Definitions:

Permanent Benefits

Long-term advantages or income received from an investment, job, or government policy.

Potential Benefits

The possible advantages or gains that could be realized from a particular action or investment.

Little Bit of Inflation

A slight increase in the general level of prices which can indicate a healthy economy by encouraging spending and investment.

Federal Reserve

The central banking system of the United States, which regulates banks, manages the country's money supply, and aims to ensure economic stability.