The Following Is One of the Reasons to Have a Consistent

question 2

Multiple Choice

The following is one of the reasons to have a consistent and disciplined review of information from data gathering and monitoring:

• A) to keep track of all activities
• B) to avoid poor understanding of problems due to weak review of data
• C) to ease the burden of collecting data
• D) to prevent emerging crises

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate financial planning.

Activity Variance

Activity variance is the difference between the expected level of activity used to estimate fixed costs and the actual level of activity experienced.

Administrative Expenses

Overhead or general expenses related to the administration of a business, including office salaries, utilities, and legal costs.

Planning Budget

A budget prepared for a planned level of activity; it is used for planning and control purposes within an organization.