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7 years ago
Murphy Construction Materials Company has a sales office that sells concrete culvert pipes to property developers. The sales office is a revenue center and prepares a monthly responsibility report. The partially completed responsibility report is provided.

   Revenue Center Responsibility Report
Product
Type   Actual Sales
Revenue   Flexible
Budget
Variance   U/F   Flexible Budget   Sales
Volume Variance   U/F   Static Budget
40 inch   $31,700         $30,750         $40,800
36 inch long   40,150         42,200         33,000
36 inch short   36,200         33,100         31,000
32 inch   19,100         20,000         28,400

The company uses management by exception to address flexible budget variances. On which product type would the company first focus?
A) 32 inch
B) 36 inch short
C) 40 inch
D) 36 inch long
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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Mrgo-breedMrgo-breed
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7 years ago
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Deprecated Author
wrote...
#2
7 years ago
Makes perfect sense, thx
wrote...
#3
7 years ago
Happy to help Smiling Face with Open Mouth
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