Flexible?budget Variances Are Designed to Measure the _____

question 141

Multiple Choice

Flexible?budget variances are designed to measure the _____.

• A)effectiveness of operations at projected level of activity
• B)effectiveness of operations at actual level of activity
• C)efficiency of operations at projected level of activity
• D)efficiency of operations at actual level of activity

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Definitions:

Coefficient of Variation

A measure of relative variability computed as the ratio of the standard deviation to the mean, often expressed as a percentage.

Covariance

A measure indicating the extent to which two variables change together, signifying the direction of their linear relationship.

Standard Deviation

A statistic that quantifies the amount of variation or dispersion of a set of data values, typically used to measure how spread out the numbers in a data set are.

Slope

A measure of the steepness, incline, or grade of a line, indicating the ratio of the vertical change to the horizontal change between two points on the line.