After Experiencing Its First Budget Surplus in 30 Years in 1998

question 13

Multiple Choice

After experiencing its first budget surplus in 30 years in 1998, for how many consecutive years following that did the budget remain in a surplus state?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Standard Costing

An accounting method that applies estimated costs to product costs for budgeting purposes and cost control.

Flexible Budget

A budget that adapts or changes based on the fluctuations in a business's activity or volume level.

Variable Overhead

Costs that fluctuate with production volume, such as utilities or materials used in production.

Direct Labour Hours

are the hours worked by employees directly involved in the production of goods and services.