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.

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Definitions:

Written Document

A formal piece of writing that records information, transactions, or agreements, and is used as evidence or reference.

Offeror

The party in a contract who proposes the terms of an agreement to another party, awaiting acceptance or rejection.

Intent

The determination to perform a particular act or to act in a particular manner for a specific reason.

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions of an arrangement.