When Actual Selling Costs Far Exceed Budgeted Costs

Multiple Choice

When actual selling costs far exceed budgeted costs

A) it is considered a bad situation, as the objective is to minimize selling costs.
B) it is considered a good situation, as high selling costs automatically mean high sales.
C) it is cause for concern, since costs are only allowed to exceed the budgeted amount by a small percentage.
D) it is cause for concern, since top management will cut future budgets to reduce costs.
E) it is cause for further analysis to discover whether a specified relationship between sales and selling costs was maintained.