When Is a Static Budget Most Appropriate in Evaluating a Manager's

question 94

Multiple Choice

When is a static budget most appropriate in evaluating a manager's performance?

• A)when the actual costs incurred equal the amounts in the budget
• B)when the actual activity is less than the master budget activity
• C)when the company performed at the same activity level as the static budget level
• D)The static budget is not appropriate for evaluating managers.

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Definitions:

Present Value

The present worth of a future amount of money or series of cash flows when calculated with a certain rate of return.

Withdrawals

The process of removing funds from an account, typically from a bank or investment account.

Retire

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or for health reasons.

Beginning

Beginning, in financial terms, often refers to the starting point or initial value of an account, inventory, or financial statement at the onset of a period.