A Static Budget

question 208

Multiple Choice

A static budget

• A) should not be prepared in a company.
• B) is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs.
• C) shows planned results at the original budgeted activity level.
• D) is changed only if the actual level of activity is different than originally budgeted.

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Definitions:

Two-Factor Theory

A psychological theory that proposes emotions are based on two factors: physiological arousal and cognitive labeling of that arousal.

Polygraph Principle

The polygraph principle is based on detecting physiological changes in the body as a response to questions, used to infer truthfulness.

Spillover Effect

The spillover effect describes a situation where an event in one context or domain influences events in another context or domain, often extending the impact beyond the initial area.

James-Lange Theory

A theory suggesting emotions result from the perception of bodily reactions to external events.