The Fixed Budget Performance Report of Boston Associates for the Year

question 13

Multiple Choice

The fixed budget performance report of Boston Associates for the year ended 30 June 2019 shows budgeted manufacturing costs of $540 000 and actual manufacturing costs of $570 000. The unfavourable variance of $30 000 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:

FICA

The Federal Insurance Contributions Act, a U.S. law requiring a deduction from paychecks to fund Social Security and Medicare.

Property Taxes

Taxes imposed on property owners by local governments, based on the assessed value of their property, including lands and buildings.

Governmental Funds

Categories of funds used by governments in accounting to segregate transactions related to specific government functions, such as education or public safety.

Fiduciary Fund Types

Categories of funds used by governments to account for resources for which the government acts as a trustee or fiduciary for individuals, private organizations, or other government units.