The Amount of Fixed Costs Which Appear on the Flexible

question 146

True/False

The amount of fixed costs which appear on the flexible budget is the same as those appearing on the master budget.

---

Definitions:

Raw Materials

Materials in their natural, unprocessed state used as inputs in production processes.

FOB Destination

A shipping term where the seller bears the shipping costs and retains ownership of the goods until they are delivered and accepted by the purchaser.

Consignment Stock

Inventory that is in the possession of the customer but still legally owned by the supplier until sold.

Stock Discrepancies

Differences between the amount of inventory recorded and the actual inventory present, often resulting from errors or theft.