A Static Budget Is Best Used to

question 69

Multiple Choice

A static budget is best used to

• A)measure whether or not a manager accomplishes his or her goals.
• B)compare expected costs at the actual level of activity with the actual costs.
• C)assess how well costs were controlled during the year.
• D)determine managerial efficiency.
• E)none of these.

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Definitions:

Activity-Based Costing

A costing methodology that identifies activities in an organization and assigns costs to products and services according to their consumption of those activities.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into creating them, aiming for more accurate cost information.

Activity-Based Costing

is a method of accounting that assigns costs to products based on the activities they require, aiming to provide more accurate product costing.

Activity Rate

The activity rate refers to a predetermined overhead rate used in activity-based costing to allocate costs to products or services based on specific activities.