Erwin Plumbing Materials Company has a sales office that sells water pipes to construction companies.The sales office is a revenue center and prepares a monthly responsibility report.The partially completed responsibility report is provided. $$\begin{array}{l}
\text { Revenue Center Responsibility Report }\
\begin{array} { | c | c | c | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Product } \
\text { Type }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Sales } \
\text { Revenue }
\end{array} & \begin{array} { c }
\text { Flexible } \
\text { Budget } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c }
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array} { c }
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c }
\text { Static } \
\text { Budget }
\end{array} \
\hline 40 \text { inch } & \$ 31,700 & & & \$ 30,750 & & & \$ 40,800 \
\hline 36 \text { inch long } & 40,150 & & & 42,200 & & & 33,000 \
\hline 36 \text { inch short } & 36,200 & & & 33,100 & & & 31,000 \
\hline 32 \text { inch } & 19,100 & & & 20,000 & & & 28,400 \
\hline
\end{array}
\end{array}$$ The company uses management by exception to address flexible budget variances.On which product type would the company first focus?

Question

Erwin Plumbing Materials Company has a sales office that sells water pipes to construction companies.The sales office is a revenue center and prepares a monthly responsibility report.The partially completed responsibility report is provided. $$\begin{array}{l}
\text { Revenue Center Responsibility Report }\
\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Product } \
\text { Type }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Sales } \
\text { Revenue }
\end{array} & \begin{array} { c } 
\text { Flexible } \
\text { Budget } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c } 
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array} { c } 
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c } 
\text { Static } \
\text { Budget }
\end{array} \
\hline 40 \text { inch } & \$ 31,700 & & & \$ 30,750 & & & \$ 40,800 \
\hline 36 \text { inch long } & 40,150 & & & 42,200 & & & 33,000 \
\hline 36 \text { inch short } & 36,200 & & & 33,100 & & & 31,000 \
\hline 32 \text { inch } & 19,100 & & & 20,000 & & & 28,400 \
\hline
\end{array}
\end{array}$$ The company uses management by exception to address flexible budget variances.On which product type would the company first focus?

Quizplus · Accepted Answer

The Answer of Erwin Plumbing Materials Company has a sales office that sells water pipes to construction companies.The sales office is a revenue center and prepares a monthly responsibility report.The partially completed responsibility report is provided. $$\begin{array}{l}
\text { Revenue Center Responsibility Report }\
\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Product } \
\text { Type }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Sales } \
\text { Revenue }
\end{array} & \begin{array} { c } 
\text { Flexible } \
\text { Budget } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c } 
\text { Flexible } \
\text { Budget }
\end{array} & \begin{array} { c } 
\text { Sales } \
\text { Volume } \
\text { Variance }
\end{array} & \text { U/F } & \begin{array} { c } 
\text { Static } \
\text { Budget }
\end{array} \
\hline 40 \text { inch } & \$ 31,700 & & & \$ 30,750 & & & \$ 40,800 \
\hline 36 \text { inch long } & 40,150 & & & 42,200 & & & 33,000 \
\hline 36 \text { inch short } & 36,200 & & & 33,100 & & & 31,000 \
\hline 32 \text { inch } & 19,100 & & & 20,000 & & & 28,400 \
\hline
\end{array}
\end{array}$$ The company uses management by exception to address flexible budget variances.On which product type would the company first focus?

Erwin Plumbing Materials Company Has a Sales Office That Sells