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.

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Definitions:

Willful Violations

Willful violations refer to deliberate or intentional breaches of a legal duty or regulation, often resulting in stricter penalties or damages.

Fine

A monetary penalty imposed as punishment for an offense or breach of law.

Penny Stock Reform Act

is legislation aimed at increasing transparency and protecting investors in the market for penny stocks, typically low-priced, speculative securities.

Cease-and-desist Orders

Legal orders issued by a court or government agency to stop an entity or individual from continuing a particular action.