Companies Using Resources to Provide Goods for Consumers

question 63

Multiple Choice

Companies using resources to provide goods for consumers

• A)are not generally required to pay for the harmful environmental costs of supplying the goods.
• B)are usually required to pay for the harmful environmental costs of supplying the goods.
• C)almost always clean up any pollution from their business operations.
• D)pass on the cost of environmental degradation to consumers.
• E)must report their environmental degradation.

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Definitions:

Flexible Budget

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

Static Planning Budget

is a budget based on a fixed level of activity and does not change with actual activity levels, useful for planning but less so for performance evaluation.

Unfavorable Activity Variance

This term describes a situation where actual costs exceed the standards or budgeted amounts, leading to a negative variance.

Static Planning Budget

A budget based on a fixed level of activity, without adjusting for any variations in actual performance, useful for initial planning.