Taylor Products Inc

question 96

Multiple Choice

Taylor Products Inc. has an $5,000 unfavorable flexible budget variance for October. Which of the following statements is true, if October's flexible budget net operating income was $175,000?

• A) Taylor's static budget must have showed a net operating income of $180,000.
• B) Taylor's static budget must have showed a net operating income of $170,000.
• C) Taylor's actual net operating income must have been $180,000.
• D) Taylor's actual net operating income must have been $170,000.

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Definitions:

Feasible Solution

A solution to a problem that meets all the constraints and requirements, often used in the context of optimization problems.

Quantity

A term denoting the amount or number of units of a particular item or material.

Inequality

Inequality refers to the unfair situation in society when resources or opportunities are distributed unevenly among different groups or individuals.

Constraints

Limitations or restrictions that dictate the parameters within which a system can operate, often influencing the outcome of projects and planning.