Which One of the Following Statements Is True in Developing

question 25

Multiple Choice

Which one of the following statements is true in developing a flexible budget within a relevant range of activity?

• A)The budget must reflect a fixed level of activity.
• B)Total variable costs should be adjusted based on the activity index chosen.
• C)Costs cannot increase when different levels of activity exist.
• D)Fixed costs are not reported.

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Definitions:

Delegates

Representatives or agents chosen to act on behalf of others, typically in a political or organizational context, entrusted with decision-making responsibilities.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Responsibility

An obligation to carry out duties or tasks with accountability for the outcomes.

Organizational Effectiveness

The degree to which an organization is successful in achieving its goals and objectives through efficient use of resources, adaptability, and fulfilling stakeholder needs.