The Activity Measure Selected for Use in a Variable- and Fixed-Overhead

question 19

Multiple Choice

The activity measure selected for use in a variable- and fixed-overhead flexible budget:

• A)should be stated in sales dollars.
• B)should be approved by the company's president.
• C)should vary in a similar behavior pattern to the way that variable overhead varies.
• D)should remain fixeD.
• E)should produce the most attractive results for the individual who will use the budget in managerial applications.