By Using a Flexible Budget,changes in Activity Level Cannot Cause

question 137

True/False

By using a flexible budget,changes in activity level cannot cause any variances between the flexible budget and actual results.

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Definitions:

Trust Fund

A fund comprised of a variety of assets intended to provide benefits to an individual or organization.

Effective Rate

is the interest rate on a loan or financial product, restated from the nominal rate as an annual rate that may incorporate compounding.

Endowment Fund

A financial endowment given to institutions like universities, museums, and non-profits to invest and use the annual income from investments for operations or programs.

Perpetuity

A financial instrument that pays a steady, never-ending stream of cash flows to the investor.