In Developing a Flexible Budget Within a Relevant Range of Activity

question 199

Multiple Choice

In developing a flexible budget within a relevant range of activity

• A) only fixed costs are included.
• B) it is necessary to relate variable cost data to the activity index chosen.
• C) it is necessary to prepare a budget at 1000 unit increments.
• D) variable and fixed costs are combined and are reported as a total cost.

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Definitions:

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or to generate revenue.

Quotas

Restrictions set by governments on the amount of a certain good that can be imported or exported.

World Price

The price of a good that is traded on the global market.

Imported

Products or services that are brought into one country from another for sale.