Which of the Following Is a Difference Between a Static

question 53

Multiple Choice

Which of the following is a difference between a static and a flexible budget?

• A) Static budgets use the same fixed cost amounts,whereas flexible budgets change the amount of fixed costs at different levels of activity.
• B) Static budgets are based on the same per unit variable amount,whereas flexible budgets are based on multiple per unit variable amounts.
• C) Static budgets are based on single estimate of volume,whereas flexible budgets show estimated costs and revenues at a variety of activity levels.
• D) None of these answers is correct.

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Definitions:

SWOT Analysis

An instrument for planning strategies that detects the Strengths, Weaknesses, Opportunities, and Threats involved in business competition or the planning of a project.

External Analysis

The process of evaluating an organization's external environment to identify opportunities and threats that could impact its strategy and operations.

Environmental Scanning

The process businesses use to understand the external factors influencing their operation, including technological, regulatory, and competitive elements.

Internal Factors

Elements or conditions within an organization or individual's control that can influence decisions, behaviors, and outcomes, such as policies, resources, and personal abilities.