Which One of the Following Is True Concerning a Static

question 106

Multiple Choice

Which one of the following is true concerning a static budget?

• A)It is prepared at the end of the accounting period once actual results are known.
• B)It is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs.
• C)It shows planned results at the original budgeted activity level.
• D)It reflects the level of activity at which the company will be most profitable.

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Definitions:

Asserted

Stated confidently or forcefully as a fact or belief.

Unasserted

Not confidently or forcefully stated or expressed.

Connective

A word or phrase in logic that connects propositions, such as "and," "or," and "not."

Asserted

To declare affirmatively; to state as a fact.