Which of the Following Is True of Flexible Budget

question 154

Multiple Choice

Which of the following is true of flexible budget?

• A) It calculates total variable cost by multiplying actual units by budgeted variable cost per unit.
• B) It calculates total fixed cost by multiplying actual units by budgeted fixed cost per unit.
• C) It calculates revenues by multiplying budgeted units by actual selling price per unit.
• D) It calculates contribution margin by multiplying budgeted units by actual contribution margin per unit.

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Definitions:

Resource Endowments

Resource endowments refer to the natural resources a country has available for use and trade, influencing its economic structure and development potential.

Net Importer

A country or region that imports more goods and services than it exports, resulting in a negative trade balance.

Economies Of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit falls as the volume of its production increases.

Opportunity Cost

The next best alternative foregone as a result of making a decision.