A System of Ideas Designed to Interrelate Concepts and Facts

question 87

Multiple Choice

A system of ideas designed to interrelate concepts and facts in a way that summarizes existing data and predicts future observations is known as a(n)

• A) hypothesis.
• B) theory.
• C) commonsense statement.
• D) operational definition.

---

Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels during a period.

Planning Budget

A budget that outlines the expected revenues, expenses, and resource allocations over a specific period, used for strategic financial planning.

Spending Variance

The difference between the budgeted amount for spending and the actual amount spent.

Supplies Cost

The total expense incurred for supplies used during a specific period, encompassing raw materials or office supplies depending on the business context.