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.

---

Definitions:

Organizational Profitability

A measure of how effectively a company generates profit compared to its revenue.

Customer Satisfaction

The degree to which a product or service meets or exceeds the customer's expectations, often considered crucial for business success.

Employee Job Satisfaction

The degree to which employees feel fulfilled, content, and happy with their positions and workplace.

Performance

The act of carrying out a task with a particular level of efficiency or success.