The Purpose of the Flexible Budget Is To

question 154

Multiple Choice

The purpose of the flexible budget is to:

• A) allow management some latitude in meeting goals.
• B) eliminate cyclical fluctuations in production reports by ignoring variable costs.
• C) compare actual and budgeted results at virtually any level of production.
• D) reduce the total time in preparing the annual budget.

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Definitions:

Coercive

Involving or using force or threats to persuade someone to do something.

Expert

A person with extensive knowledge or ability in a particular area or field.

Referent

Something that refers or points to another thing; it can be a symbol or sign that denotes another entity.

Person Power

The influence or capability derived from an individual's personal qualities or resources.