In Developing a Flexible Budget Within a Relevant Range of Activity

question 199

Multiple Choice

In developing a flexible budget within a relevant range of activity

• A) only fixed costs are included.
• B) it is necessary to relate variable cost data to the activity index chosen.
• C) it is necessary to prepare a budget at 1000 unit increments.
• D) variable and fixed costs are combined and are reported as a total cost.

---

Definitions:

Industrial Policy

Government strategies aimed at improving the competitive position and capabilities of domestic industries and firms.

Taxes, Subsidies, and Regulations

These are tools used by governments to influence economic activity. Taxes are levies on income or purchases, subsidies provide financial support, and regulations set rules for how businesses can operate.

Specific Industries

Specific Industries are distinct sectors of the economy that produce or handle similar types of goods and services, such as the automotive or technology industries.

Displaced Workers

Individuals who have been laid off from their jobs because their positions have been eliminated, usually due to economic changes, technological advancements, or business restructuring.