If Budgeted Sales Revenue Is $220 000 and Actual Sales

question 35

Multiple Choice

If budgeted sales revenue is $220 000 and actual sales revenue is $200 000, and budgeted expenses are $115 000 and actual expenses are $135 000, the profit variance for the period is:

• A) $20 000 F.
• B) $20 000 U.
• C) $40 000 F.
• D) $40 000 U.

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Definitions:

Annual Income

The total amount of money earned in one year from all sources before taxes and other deductions.

Average Rate

A representation of the central or typical value of a set of rates, often calculated to find a mean or median value.

Cash Payback Methods

A technique used to estimate the profitability of an investment by calculating the time needed to recoup the initial investment from the cash flows generated by that investment.

Capital Investment Proposals

Suggestions for strategic investments in long-term assets, projects, or ventures aimed at enhancing a company's growth and profitability.