For What Purpose Is a Flexible Budget Used

question 17

Multiple Choice

For what purpose is a flexible budget used?

• A)To provide various possible outcomes for management to consider.
• B)To adjust input prices so that future variances are eliminated.
• C)To insure that profit does not drop below a predetermined level.
• D)To identify the sources of variances.

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Definitions:

Common Law

A legal system based on precedent and judicial decisions rather than statutory laws, forming the basis of the legal system in the UK, the US, and other countries.

Case Law

The body of past judicial decisions from courts that guide future rulings on similar legal questions or disputes.

Statutory Law

Law enacted by a legislative body, such as Congress or a state legislature, as opposed to common law or constitutional law.

Supreme Law

Refers to the highest form of law in a country, typically a constitution, that supersedes all other laws and regulations.