Which of the Following Statements Is Correct

question 74

Multiple Choice

Which of the following statements is correct?

• A) The cyclically adjusted budget and the actual budget differ because the latter does not take government transfer payments into account.
• B) The cyclically adjusted budget is less likely to show a deficit than is the actual budget.
• C) The cyclically adjusted budget and the actual budget will show the same size deficit or surplus in any given fiscal year.
• D) The cyclically adjusted budget is more likely to show a deficit than is the actual budget.

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Definitions:

Standard Price

The predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.

Labor Variances

Differences between the actual labor costs incurred during production and the standard or expected labor costs, which can indicate efficiencies or inefficiencies.

Direct Labor Data

Information regarding the labor costs directly associated with the production of goods or services, used for calculating product cost and efficiency.

Matrix Calculation

A mathematical operation involving arrays of numbers, particularly useful in solving systems of linear equations and in computer graphics.