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Neporo4naja [7]
3 years ago
5

Troy Company budgeted​ $12 million for customer service​ costs, but actually spent only​ $10 million. Which of the following sta

tements is the best course of action for management to take in this​ instance? A. Management will investigat this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service.
B. Because this $2 million variance is favorable, management does not need to investigate further.

C. Management will investigate this $2 million unfavorable variance to try to identify and correct the problem.

D. Management should not investigat every major variance, especially an unfavorable variance.
Business
1 answer:
irinina [24]3 years ago
3 0

Answer:

The correct answer is A

Explanation:

A variance which is favorable, although have a positive sign for any company could not be ignored completely as ti could be a consequence of compromising on the quality of service of the customer being provided which could affect the company in the long run. So, it is very vital to keep a check on the favorable as well as on the unfavorable variances.

So, Management should investigate the $2 million favorable variance in order to ensure the cost savings which should not reflect on the customer service.

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How does the FDIC monitor banks?
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7 0
1 year ago
Compensation may be offered at the individual, group, and organizational level, depending on what type of performance is to be r
Kamila [148]

Answer:

true

Explanation:

Compensation can be direct or indirect

Some of the components of compensation includes :

  • Base pay
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  • stock options
  • Bonuses
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Direct compensation are usually offered to individuals

Base pay is usually offered to the individual based on certain parameters .

Same with commissions

But there are some compensations that are offered to groups. For example if members of a department achieve a certain benchmark, they  can be rewarded with stock options

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8 0
2 years ago
Company is a popular car-wash operation that measures its activity in terms of number of cars washed. Last month, the budgeted l
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Answer:

the spending variance is $6,904 favorable

Explanation:

The computation of the spending variance is as follows;

Budgeted Expense is

= 1,230 cars × $4.80 per car + $26,000

=  $5,904 + $26,000

= $31,904

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Therefore, the spending variance is

= $31,904 - $25,00

= $6,904

Therefore, the spending variance is $6,904 favorable

5 0
2 years ago
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