Select the Incorrect Statement

question 88

Multiple Choice

Select the incorrect statement.

• A) If both the flexible budget and actual results are based on the actual volume of activity, the flexible budget sales variance will be attributable to sales price, not sales volume.
• B) Budget slack is the difference between deflated and realistic standards.
• C) Gamesmanship is decreased if superiors and subordinates participate sincerely in setting mutually agreeable, attainable standards.
• D) For performance evaluation, management should compare actual results to a flexible budget based on the actual volume of activity.

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Definitions:

Warrant

A legal document issued by a government agency or court that authorizes the police or another body to make an arrest, search premises, or carry out some other action relating to the administration of justice.

Dematerialization

The process of converting physical documents into digital format, reducing the need for paper and streamlining information management.

Smartphones

Mobile phones with advanced computing capabilities and connectivity, functioning as handheld computers.

Microwave Transmission

A wireless system that uses microwaves for high‑volume, long‑distance, point‑to‑point communication.