A Static Budget Is Appropriate in Evaluating a Manager's Performance

question 165

Multiple Choice

A static budget is appropriate in evaluating a manager's performance if

• A) actual activity closely approximates the master budget activity.
• B) actual activity is less than the master budget activity.
• C) the company prepares reports on an annual basis.
• D) the company is a not-for-profit organization.

---

Definitions:

At-risk Amount

The maximum amount of money an individual could lose in an investment, which has implications for tax deductions on certain types of losses.

At-risk Amount

The amount of money an investor could lose in an investment, emphasizing the capital actually at risk.

Passive Loss Rules

U.S. tax regulations that restrict the amount of losses investors can claim from passive activities to the amount of income generated by those activities.

Gain(Loss)

The profit or shortfall realized from an investment when comparing the sale price to the original purchase price.