With Respect to U

question 3

Multiple Choice

With respect to U.S.GAAP,the SEC's approach to determining whether International Financial Reporting Standards (IFRS) should be allowed for and/or replace GAAP can be described as:

• A)Transparency
• B)Comparability
• C)Convergence
• D)Condorsement

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Definitions:

Flexible Budget

A flexible budget adjusts according to the actual levels of activity experienced, allowing for more accurate comparisons of budgeted to actual performance.

Static Budget

A budget that is set for a specific level of activity and does not change or adjust with the actual level of activity achieved.

Fixed Manufacturing Overhead

The set costs involved in producing a product that do not change with the level of production, such as rent, salaries, and utilities.

Master Budget

A comprehensive financial plan comprising various individual budgets covering all facets of an organization's operations.