The Basic Difference Between a Master Budget and a Flexible

question 147

Multiple Choice

The basic difference between a master budget and a flexible budget is that a:

• A) flexible budget considers only variable costs but a master budget considers all costs.
• B) flexible budget allows management latitude in meeting goals whereas a master budget is based upon a fixed standard.
• C) master budget is for an entire production facility but a flexible budget is applicable to single departments only.
• D) master budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range.

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Definitions:

Acculturative Stress

The psychological impact of adapting to a new culture, consisting of stress caused by the process of acculturation.

Nigeria

is a country located in West Africa, known for its diverse cultures, languages, and significant oil and natural resources.

United States

A country located primarily in North America, composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Sympathetic

Pertaining to the sympathetic nervous system, part of the autonomic nervous system that often accelerates heart rate, constricts blood vessels, and raises blood pressure, preparing the body for action.