Enriques Corporation Manufactures and Sells a Single Product

question 126

Multiple Choice

Enriques Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,000 units, but its actual level of activity was 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
-The activity variance for net operating income in February would be closest to:

• A) $2,716 F
• B) $2,716 U
• C) $176 U
• D) $176 F

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Definitions:

Long-term Growth

The sustained increase in value, productivity, or size over an extended period, often viewed as a sign of health and prosperity within economies or businesses.

Business Interests

Concerns, investments, or stakes that influence the decisions and actions of a business or an individual in a commercial context.

Expansion

The process of increasing the size, scale, or scope of a business or organization's operations, typically by entering new markets or increasing product lines.

Corporate Strategy

A high-level plan for a company to achieve specific business objectives and competitive advantage.