When Is a Static Budget Most Appropriate in Evaluating a Manager's

question 2

Multiple Choice

When is a static budget most appropriate in evaluating a manager's performance?

• A)When the actual costs incurred equal the amounts in the budget
• B)When the actual activity is less than the master budget activity
• C)When the company performed at the same activity level as the static budget level
• D)The static budget is not appropriate for evaluating managers.

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Definitions:

Statutorily Established Liquidated Damages

Damages specified by law for certain breaches of contract, where actual damages are difficult to ascertain.

Firm Offer

A binding promise made by a seller to hold an offer open for a specified period of time, not requiring consideration to be enforceable under certain conditions in commercial transactions.

Breach of Warranty

Failure to fulfill the terms of a promise or guarantee made about the quality or duration of a product or service.

Installation

The process of setting up or fitting equipment, software, or hardware for it to be ready for use.