Differences Between the Static Budget and the Flexible Budget Are

question 142

Multiple Choice

Differences between the static budget and the flexible budget are due to _____.

• A)problems of cost control
• B)poor usage of material and labor
• C)a combination of price and material variances
• D)actual activity differing from expected activity levels

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Definitions:

Nominal Rate

The interest rate stated on a loan or investment agreement, not accounting for inflation or compounding effects.

Semi-Annual Payments

Payments made twice a year, often used in the context of loan repayments or bond interest payments.

Nominal Rate

The stated interest rate of an investment or loan, which does not account for compounding or inflation effects.

Monthly Compounded

A method where interest adds to the principal sum at the end of each month, allowing for the interest in the next month to be based on the new total.