Which One of the Following Is True Concerning a Static

question 106

Multiple Choice

Which one of the following is true concerning a static budget?

• A)It is prepared at the end of the accounting period once actual results are known.
• B)It is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs.
• C)It shows planned results at the original budgeted activity level.
• D)It reflects the level of activity at which the company will be most profitable.

---

Definitions:

Dependent

Someone who relies on another, particularly for financial support, often a child or other family member as defined for tax purposes.

Medical Services

Professional services provided by doctors, nurses, or any healthcare providers, typically aimed at diagnosing, treating, or preventing illness.

Itemized Deduction

Specific expenses allowed by the IRS that can be subtracted from AGI to decrease taxable income.

AGI Floor

A threshold based on a taxpayer's adjusted gross income (AGI) that limits the deductibility of certain expenses.