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:

Design For Disassembly

A design process aimed at making products easier to disassemble at the end of their life cycle, facilitating recycling or disposal.

Mediating Technology

Links people together in a beneficial exchange of values.

Mutually Beneficial

A situation or agreement that provides advantageous outcomes to all parties involved, ensuring that everyone gains or benefits from the collaboration.

Exchange Of Values

A fundamental concept in economics and marketing referring to the mutual giving and receiving of value, often in the form of goods, services, or money, between parties in a transaction.