For a certain company last year, the table shows all of the budgeted

Question

For a certain company last year, the table shows all of the budgeted amounts and actual expenditures in each of six categories. The table also shows the percentage over or under budget (the actual expenditures minus the budgeted amount as a percentage of the budgeted amount). A positive percentage indicates being over budget; a negative percentage indicates being under budget.

Category  
  Budgeted  
  Actual expenditures  
  Percentage over/under budget  
 
  Electricity 
 $7,120 
 $5,863.1 
 -17.7% 
 
  Garbage pickup 
 $2,008 
 $2,250.66 
 12.1% 
 
  Internet/telephone 
 $2,560 
 $2,639.3 
 3.1% 
 
  Natural gas 
 $2,968 
 $2,658.21 
 -10.4% 
 
  Sewer 
 $6,840 
 $6,428.94 
 -6% 
 
  Water 
 $2,304 
 $2,369.9 
 2.9%

For each of the following statements about the categories in the table, select  Yes  if the statement accurately reflects the information provided. Otherwise, select  No .

ID: 700270

asmba · Answer

No-Yes-No

1) No - The category with the greatest budgeted amount is Electricity while the category with the greatest actual expenditures is Sewer
2) Yes - The category with the least budgeted amount is Garbage pickup which is also the category for which the magnitude of the percentage over budget was greatest (12.1%)
3) No - The category with the greatest actual expenditures is Sewer while the category for which the magnitude of the percentage under budget was greatest is Electricity (-17.7%)

chini · Answer

hello,  Bunuel , wouldn't this be a math related question

Bunuel · Answer

Changed the tag. Thank you!

Nymeria26 · Answer

Bunuel , when they asked magnitude of percentage, don't we ignore the negative sign? pls confirm.

Bunuel · Answer

Yes, "magnitude" means the absolute value, so we ignore the negative sign when referring to it.

kuench · Answer

the second question asked about the greatest magnitude of %. is it should be Electricity?

chetan2u · Answer

In 2nd question, the statement talks of greatest magnitude of over budget %, so we look for max positive value, and that is 12.

Prc0403 · Answer

i also made the same mistake. But in the statement they mention magnitude of percentage over budget, so we need to consider only the items which were over budget (+ve values)

KavyaD17 · Answer

IMP Note: Magnitude means absolute value without sign, but also remember to read the question properly, as here they asked for highest magnitude within a specific category like over budget or under budget.

egmat · Answer

Hi kuench,

Great question! The key here is a subtle but  important  phrase in S2: it says 'the magnitude of the percentage OVER budget was greatest' — not just the greatest magnitude overall.

Electricity has a percentage of  -17.7% , which is a NEGATIVE percentage. That means Electricity was UNDER budget, not over budget. So Electricity doesn't even qualify for consideration in S2.

We need to look only at categories that were OVER budget (positive percentages): 
- Garbage pickup:  +12.1% 
- Internet/telephone:  +3.1% 
- Water:  +2.9%

Among these three, Garbage pickup has the greatest magnitude at  12.1% .

Now, does Garbage pickup also have the least budgeted amount? Let's check all budgeted amounts:
- Electricity:  $7,120 
- Sewer:  $6,840 
- Natural gas:  $2,968 
- Internet/telephone:  $2,560 
- Water:  $2,304 
- Garbage pickup:  $2,008

Yes! Garbage pickup has the smallest budget at  $2,008 .

So S2 is  Yes  — Garbage pickup has both the least budgeted amount AND the greatest over-budget percentage magnitude.

You were likely thinking of Electricity's  17.7%  as the biggest magnitude overall, but Electricity was UNDER budget, so it doesn't count for S2.  The word 'over' in 'percentage over budget' is doing critical work here.

Key Insight:  Always watch for whether the statement says 'over,' 'under,' or just 'magnitude' without qualification — the GMAT loves testing this distinction!

Answer: No, Yes, No

Yes	No
		The category with the greatest budgeted amount is also the category with the greatest actual expenditures.
		The category with the least budgeted amount is also the category for which the magnitude of the percentage over budget was greatest.
		The category with the greatest actual expenditures was also the category for which the magnitude of the percentage under budget was greatest.

For a certain company last year, the table shows all of the budgeted

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Category	Budgeted	Actual expenditures	Percentage over/under budget
Electricity	$7,120	$5,863.1	-17.7%
Garbage pickup	$2,008	$2,250.66	12.1%
Internet/telephone	$2,560	$2,639.3	3.1%
Natural gas	$2,968	$2,658.21	-10.4%
Sewer	$6,840	$6,428.94	-6%
Water	$2,304	$2,369.9	2.9%

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For a certain company last year, the table shows all of the budgeted

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