Which One of the Following Would Be the Same Total

question 67

Multiple Choice

Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets?

• A)direct labour cost
• B)indirect labour cost
• C)fixed manufacturing overhead
• D)variable manufacturing overhead

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Definitions:

Inventory Levels

The quantity of goods and materials on hand that are available for sale or production processes in a company.

Pay Suppliers

The process of settling financial obligations to suppliers by providing them with the agreed-upon payment for goods or services purchased on credit.

Opportunity Costs

The price paid by not choosing the second-best option available during decision-making.

Foregone Resource

The benefits or income lost when one option is chosen over another, essentially another term for opportunity cost but often used in the context of tangible resources.