ACC 561 Sample Final Examination
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ACC 561 Sample Final Examination
Week One: Decision Making
Objective: Explain the role of budgets and performance reports in the management decision-making process.
- The Hola Company held a Christmas party. The company expected attendance of 100 persons and prepared the following budget:
Hotel room rental 600
Food 500
Entertainment 800
Decorations 300
Totals 2,200
After all bills for the party were paid, the total came to 2,315. Details are 575 for hotel room rental, 640 for food, 750 for entertainment, and 350 for decorations. 100 persons attended the party. What is the main reason for the unfavorable total budget variance?
a. Hotel room rental is the main reason.
b. Food is the main reason.
c. Entertainment is the main reason.
d. Decorations are the main...
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