A Static Budget Report

question 23

Multiple Choice

A static budget report

• A) shows costs at only 2 or 3 different levels of activity.
• B) is appropriate in evaluating a manager's effectiveness in controlling variable costs.
• C) should be used when the actual level of activity is materially different from the master budget activity level.
• D) may be appropriate in evaluating a manager's effectiveness in controlling costs when the behavior of the costs in response to changes in activity is fixed.

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Definitions:

Esteem Needs

According to Maslow's hierarchy, these are the fourth level of human needs, focusing on respect, self-esteem, and recognition from others.

Physiological Needs

The basic physical requirements necessary for human survival, such as air, water, food, shelter, and sleep, as outlined in Maslow's hierarchy of needs.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Physiological Needs

Basic, essential human requirements for survival, such as food, water, shelter, and sleep, according to Maslow's hierarchy of needs.