With an Activity Flexible Budget, a Budget Variance Is Calculated

question 168

Multiple Choice

With an activity flexible budget, a budget variance is calculated

• A)based on a flexible budget based on cost for actual units produced.
• B)based on a flexible budget based on various activity drivers for actual units produced.
• C)based on a flexible budget based on flexible manufacturing.
• D)based on a flexible budget based on committed resources for actual units produced.

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Definitions:

Consumption Expenditures

The total amount of money spent by households and individuals on goods and services for personal use.

Circular Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms.

Households

Economic units that consist of all individuals who live together in one dwelling, making joint decisions about consumption and labor.

Circular Flow Model

An economic model illustrating the continuous movement of money, goods and services, and factors of production between producers and consumers in an economy.