The Purpose of Creating a Flexible Budget Is To

question 37

Multiple Choice

The purpose of creating a flexible budget is to:

• A)Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual sales.
• B)Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual variable costs.
• C)Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual fixed costs.
• D)Determine which department is responsible for the overall budget variance.

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Definitions:

Oxbow Lake

An isolated, curved lake formed when a cutoff meander is filled with water.

Sinuosity

The measure of how much a river or stream meanders, calculated as the channel length divided by the straight-line distance downstream.

Esker

A long, winding ridge of stratified sand and gravel, typically occurring in glaciated and formerly glaciated regions, formed by retreating glaciers or meltwater.

Levees

Natural or artificial embankments built along rivers or watercourses to prevent their waters from overflowing onto adjacent land.