The Activity Index Used in Preparing the Flexible Budget

question 55

Multiple Choice

The activity index used in preparing the flexible budget

• A) is prescribed by generally accepted accounting principles.
• B) is only applicable to fixed manufacturing costs.
• C) is the same for all departments.
• D) should significantly influence the costs that are being budgeted.

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Definitions:

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A trick played on someone in order to make them look foolish or to amuse others, often involving a physical or visual deception.

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An organization that provides firefighting services to protect the public from fire hazards and emergencies.

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