Flexible Budgets Reflect: I. Operations for Actual Costs and Revenues

question 27

Multiple Choice

Flexible budgets reflect:
I. Operations for actual costs and revenues
II. Operations for costs and revenues for the volume of sales from the master budget
III. Operations for actual volume of sales with budgeted variable costs per unit and budgeted total fixed costs

• A) I only
• B) II only
• C) III only
• D) II and III only

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Definitions:

Rights

Charter of entitlements and freedoms guaranteed to individuals, often protected by law.

Utilitarian Principle

A philosophical concept that actions are right if they are useful or for the benefit of the majority.

Greatest Happiness

A principle stating that actions are right in proportion as they tend to promote overall happiness, identifying happiness with the maximum pleasure and minimum pain.

Rule Consequentialism

An ethical theory that suggests the moral correctness of an action depends on the consequences of following rules that are designed to promote the greatest good.