An Advantage of a Flexible Budget Is That It

question 4

Multiple Choice

An advantage of a flexible budget is that it:

• A) Considers only variable costs
• B) Incorporates adjustments caused by volume changes
• C) Allows management freedom in meeting goals
• D) Allows comparison of actual costs to master budget costs

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Definitions:

Production Line Method

A manufacturing process in which parts or components of an end product are made in a sequential order, thus enhancing efficiency and productivity.

Empowerment

The process of giving individuals or groups the authority, resources, and confidence to take control of their circumstances and achieve their own goals.

Suggestion Involvement

Active participation in generating and sharing ideas or solutions to contribute to a group or project.

Theory X

A management theory suggesting that employees are inherently lazy and will avoid work if they can, necessitating a controlling management style.