When Is a Static Budget Most Appropriate in Evaluating a Manager's

question 94

Multiple Choice

When is a static budget most appropriate in evaluating a manager's performance?

• A)when the actual costs incurred equal the amounts in the budget
• B)when the actual activity is less than the master budget activity
• C)when the company performed at the same activity level as the static budget level
• D)The static budget is not appropriate for evaluating managers.

---

Definitions:

Cash Payments

Money disbursed by a business for goods, services, or other obligations.

Accounts Receivable

Funds that customers owe to a company for products or services provided but not yet compensated for.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered or used, but not yet paid for.

Inventory

The total amount of goods and materials held by a company that are ready for sale or in the process of being produced.