A Flexible Budget

question 111

Multiple Choice

A flexible budget

• A)is not as useful in evaluating a manager's performance as a static budget.
• B)can be prepared for each of the types of budgets included in the master budget.
• C)relies on the assumption that unit fixed costs will remain constant within the relevant range of activity.
• D)reflects budget data for one level of activity only.

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Definitions:

Stage

An identifiable time period in development or processes during which certain behaviors, experiences, or phenomena are more prevalent or potent.

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development.

Moral Development

The process through which individuals develop proper attitudes and behaviors towards other people in society, based on social and cultural norms, rules, and laws.

Preconventional

The first level in Kohlberg's theory of moral development, where moral understanding is based on rewards and punishments associated with different actions.