An Advantage of a Flexible Budget Is That It

question 60

Multiple Choice

An advantage of a flexible budget is that it:

• A) Allows comparisons of the actual costs with those that should have been incurred
• B) Considers only variable costs
• C) Allows management freedom in meeting goals
• D) Allows comparison of actual costs to master budget costs

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Definitions:

Nonfinancial Reward

Incentives or benefits given to employees or individuals that are not monetary, such as recognition or professional growth opportunities.

Sales Contest

A short-term incentive designed to elicit a specific response from the sales force.

Bonus

A payment made at management’s discretion when the salesperson attains certain goals; usually given only periodically, such as at the end of the year.

Sales Management

Involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force.