Scale Refers to the Kinds of Activities a Firm Performs

question 50

True/False

Scale refers to the kinds of activities a firm performs and scope to the size of activities.

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Definitions:

Spending Variance

The difference between the actual amount of an expense and the budgeted or planned amount.

Static Planning Budget

A budget based on a fixed level of activity and not adjusted for actual activity levels.

Flexible Budget

A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.

Revenue Variance

The difference between the actual revenue earned by a business and its expected (or budgeted) revenue, which can be favorable or unfavorable.