At the End of 2019, Dubai Mission Prepared Its Master

At the end of 2019, Dubai Mission prepared its master budget for 2020. Selected amounts from that budget, along with actual results for 2020, are presented below: $$\begin{array} { l r r } & \underline { \text { Budgeted } } & \underline { \text { Actual } } \\\text { Sales } & \$ 180,000 & \$ 210,000 \\\text { Research and development cost } & 25,000 & 20,000 \\\text { Interest revenue } & 7,600 & 7,000 \\\text { Cost of goods sold } & 60,000 & 65,000 \\\text { Marketing costs } & 45,000 & 45,000\end{array}$$ 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

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free