The Difference Between the Amount Budgeted and the Actual Amount

question 107

Multiple Choice

The difference between the amount budgeted and the actual amount is called a

• A)financial plan.
• B)current liability.
• C)change in net worth.
• D)budget variance.
• E)variable living expense.

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Definitions:

Total Fixed Costs

A company's expenses that do not change with the level of production or services, such as rent, salaries, and insurance premiums.

Financial Well-being

A state where an individual has achieved a satisfactory level of financial security and freedom to make choices that allow them to enjoy life.

Short Run

A time period in which at least one input (e.g., plant size, machinery) is fixed and cannot be varied by the firm.

Economic Profit

The divergence between an organization's total turnover and its entire liabilities, including both evident and underlying costs.