Which Statement Is True About the Activity Index Used in Preparing

question 98

Multiple Choice

Which statement is true about the activity index used in preparing the flexible budget?

• A)It applies only to fixed manufacturing costs.
• B)It is the same for all departments of the company.
• C)It significantly influences the variable costs that are being budgeted.
• D)It is irrelevant to total costs.

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Definitions:

Unconscious Motivations

Drives or desires that influence a person's actions or feelings without their awareness.

Overt Actions

Actions that are open, observable, and measurable by others, as opposed to internal or covert processes.

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Behaviourist

A psychologist who studies and practices behaviorism, emphasizing the importance of observable actions and behaviors over internal processes like thoughts and emotions.