Which Definition Best Describes Parsimony

question 8

Multiple Choice

Which definition best describes parsimony?

• A)Explaining the most with the least
• B)Explaining the least with the most
• C)Being able to explain all of the change in the response variable
• D)Being able to predict the value of the response variable far into the future

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Definitions:

Static Budget

A budget that remains unchanged over the budget period and is not adjusted for actual levels of activity.

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, production levels, or other operational factors.

Direct Materials

Raw materials that can be directly traced to the production of goods or services and are considered variable costs.

Fixed Utilities

Charges for basic services like electricity, water, and gas that do not fluctuate greatly with usage levels, often considered part of an organization's fixed overhead.