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:

Balance Of Trade

The difference between a country's exports and imports of goods, without including services.

Goods Exports

Refers to the selling and shipment of tangible products from one country to another, contributing to a nation’s gross domestic exports.

Goods Imports

The process of bringing goods from foreign countries into one’s own country for use or sale.

Balance Of Payments

A record of all financial transactions made between consumers, businesses, and the government in one country with others.