Differences Between Actual and Budgeted Expenditures Can Arise Due to Changes

question 17

Multiple Choice

Differences between actual and budgeted expenditures can arise due to changes in input prices, efficiency, intensity, and output volume. A flexible budget accounts for which of these four variables?

• A) Input prices
• B) Efficiency
• C) Intensity
• D) Output volume

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Definitions:

Substantially Impaired

A situation where the value, function, or utility of something has been significantly reduced or damaged.

Conform to the Contract

The requirement for the goods, services, or conditions provided or received to meet the specifications, quality, and terms outlined in a contractual agreement.

Commercial Unit

A term used in sales law referring to a standard or unit of goods that is regarded as a single whole for purposes of sale and division.

Accept Goods

The act of receiving or taking delivery of goods in a manner that conforms with the terms of a contract.