Davis Fishing Supplies, Inc. purchases fishing lures, on account, to sell to their customers.They should recognize the cost of the lures _________________.

A.When they receive the lures from their supplier

B.When they pay their supplier for the lures

C.When they sell the lures

D.When the customer pays for the lures

The company budgeted total facilities cost at $50,000.Actual facilities cost was $52,000.This _________________.

A.represents a favorable variance of $2,000

B.represents an unfavorable variance of $2,000

C.was probably caused by a decrease in the amount of rent paid.

D.Could only have been caused by an error in the budgeting process