Activity Flexible Budgeting Is the Prediction of What Activity Costs

question 152

True/False

Activity flexible budgeting is the prediction of what activity costs will be as related output changes.

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Definitions:

Stakeholders

Individuals or groups with an interest or concern in the success and operations of a business, including employees, customers, investors, and suppliers.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state or future outcome.

Risk

The exposure to the possibility of loss, damage, or any other undesirable event.

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.