Diskind Corporation Manufactures and Sells a Single Product

question 153

Multiple Choice

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The spending variance for direct materials in October would be closest to:

• A)$1,295 F
• B)$2,010 U
• C)$2,010 F
• D)$1,295 U

Prepare adjusting journal entries based on a reconciliation report.

Identify and apply internal control principles in various contexts.

Explain the role of internal documentation and procedures in safeguarding assets.

Calculate and analyze days' sales uncollected to evaluate a company's receivables management.

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Definitions:

Incremental Change

Gradual, step-by-step modifications made to improve a system or process over time.

Strategic Change

Fundamental shifts in an organization’s strategy, often involving changes in structure, operations, and culture to achieve long-term goals.

SMART Goals

Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, designed to be clear and reachable.

Specific

The term specific refers to something clearly defined, explicit, or particular, distinguishing it from vague or general descriptions.