In the flooring upgrade file, a cost code is $5,625 over on a $72,500 budget. What is the over-budget percentage, rounded to one decimal place?
Correct Answer
C) 7.8 percent.
The variance percentage is $5,625 / $72,500 = 7.8 percent.
Why This Is the Correct Answer
The variance percentage is $5,625 / $72,500 = 7.8 percent.
Why the Other Options Are Wrong
Option A: 77.6 percent.
77.6 percent misplaces the decimal point, giving ten times the correct amount. The correct calculation is 5,625 / 72,500 = 0.078.
Option B: 0.8 percent.
0.8 percent misplaces the decimal point, giving one tenth of the correct amount. The correct calculation is 5,625 / 72,500 = 0.078.
Option D: 92.2 percent.
92.2 percent reports the remaining share instead of the ratio asked for. The correct calculation is 5,625 / 72,500 = 0.078.
Reference Hint
Study anchor (closed-book): memorize Budget variance from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
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