Variances for Variable Costs Will Be Misleading When the Planned

question 3

Multiple Choice

Variances for variable costs will be misleading when the planned output differs from budgeted output.A solution to this problem would be

• A)to use a stricter budgeting process.
• B)to use flexible budgeting.
• C)to better predict the final output.
• D)to allow more judgement involve in the budgeting process.

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Definitions:

Non-interventionists

Advocates or policies favoring minimal political or military involvement by a country in international affairs.

Keynesian Economists

Economists who follow the principles of Keynesian economics, emphasizing the role government policy and fiscal measures play in managing economic cycles.

Discretionary Economic Policies

Economic policies based on judgment or choice rather than set rules, often involving government intervention in the economy through spending and taxation decisions.

Destabilizing

Causing or likely to cause a lack of stability in an economy or market, leading to uncertainty and potential financial downturns.