The Activity Measure Selected for Use in a Variable Overhead

question 93

Multiple Choice

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

• A)should be stated in sales dollars.
• B)should be approved by the company's president.
• C)should be one that varies in a similar behaviour 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.

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Definitions:

Random

Lacking any definite plan or order or purpose; governed by or depending on chance.

Male and Female

Categories that describe an individual’s sex, based on biological differences, within a binary framework.

Probability

An indicator of how probable it is for an event to happen, represented by a number ranging from 0 to 1.

Births

The occurrence of bringing forth a new individual from a parent organism, initiating a new life.