At the end of 2009, SWP prepared its master budget for 2010. Selected amounts from that budget, along with actual results for 2010, are presented below: The research and development cost variance could be explained by
A) Starting too many projects
B) Cost increases due to new information technologies
C) Efficient cost management
D) Higher salaries

Question

Quizplus · Accepted Answer

The research and development cost variance can be explained by efficient cost management, as the actual costs were lower than the budgeted costs. This implies that SWP was able to effectively manage and control their expenses in this area.

At the End of 2009, SWP Prepared Its Master Budget