Which One of the Following Would Be the Same Total

question 110

Multiple Choice

Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets?

• A)Direct labour cost
• B)Indirect labour cost
• C)Fixed manufacturing overhead
• D)Variable manufacturing overhead

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Definitions:

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.

Note Receivable

A written promise that a customer will pay a fixed amount of money with interest by a certain date.

Interest

The charge for borrowing money or the compensation for lending money, typically calculated as a percentage of the principal amount.

Note Receivable

A promissory note held by the lender, stating the money due to be paid back by the debtor.