21. is the expectation of revenues, expenses, profit, or other financials that a business wants to achieve for a future period, whereas estimates the number of revenues, expenses, profits or other financials that will be achieved. a. Forecasting, budgeting b. Planning, budgeting C. Forecasting, planning d. Budgeting, forecasting 22. Which of the following statements is correct? a. Unfavorable cost variances always indicate significant variances. b. Favorable cost variances always indicate insignificant variances Both of the above statements are correct. d. None of the above statements are correct C. 23. Which one of these would result in a favorable budget variance? a. Actual sales $40; budget sales $42k b. Actual gross profit $13k; budget gross profit $16k c. Budget revenue $125k; actual revenue $115k d. Budget cost $18k; Actual cost $16k 24. The budgeted profit for the period is $25,000. Actual revenues are $80,000 and actual costs are $45,000. What is the profit variance? a. $35,000, Favorable b. $10,000, Favorable C. $25,000, Unfavorable d. $20,000, Unfavorable 25. RevPAR is a financial term used by hospitality professionals working in a. restaurants b. hotels C. clubs d. all of the above 26. The following statement is true regarding profitability ratios: a. The current ratio is a profitability ratio that measures a company's ability to meet short-term obligations, b. A total asset turnover ratio of 2 indicates for every dollar invested in assets the company is generating $2 in sales c. The industry average for profit margin ratio is 10%. A company ratio of 15% would be considered favorable. d. A decreasing trend for the return on asset ratio is considered favorable. revenue