First Ledger Inc

question 46

Multiple Choice

First Ledger Inc.,an auditing company,replaced its existing accounting software with new accounting software from another supplier.Since the new software has different features and abilities,First Ledger Inc.has had to spend $10,000 on training its employees to use it.In this scenario,$10,000 represents First Ledger Inc.'s

• A) opportunity cost.
• B) switching cost.
• C) octroi charge.
• D) excise duty.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more useful comparison for actual versus budgeted performance.

Budgeted Costs

Estimated financial plan for expenditures over a specified period.

Direct Labor Hours

This term represents the total time spent by workers directly involved in the manufacturing process.

Flexible Budget Graph

A visual representation that shows the difference between actual and expected performance at various levels of activity.