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:

Punishment

A consequence applied with the intent of reducing the occurrence of an undesirable behavior.

Positive Punishment

Adding an unpleasant stimulus in response to a behavior to decrease the likelihood of that behavior happening in the future.

Negative Punishment

A behavioral modification technique where a desirable stimulus is removed following an unwanted behavior, decreasing the likelihood of that behavior occurring again.

Mild Punishers

Interventions or consequences designed to decrease a behavior's occurrence, which are not severe or harsh.