A Static Budget

question 208

Multiple Choice

A static budget

• A) should not be prepared in a company.
• B) is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs.
• C) shows planned results at the original budgeted activity level.
• D) is changed only if the actual level of activity is different than originally budgeted.

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Definitions:

Right of Lien

A legal right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Bailee

An individual or party to whom personal property is entrusted for a specific purpose, with an obligation to return it to the bailor.

Conversion

The refusal to deliver up a chattel to its rightful owner by a bailee.

Liability

The state of being legally responsible for something, typically referring to the obligation to pay debts or damages.