If a Static Budget Forecasted 100,000 Units to Be Sold

question 43

Multiple Choice

If a static budget forecasted 100,000 units to be sold in the fiscal year and actual units sold amounted to 120,000,what assumption could be made under a flexible budget process?

• A)Since the actual volume exceeds the budgeted volume,there is an unfavourable volume variance for output.
• B)Fixed costs would increase in the flexible budget due to the volume change.
• C)The effectiveness of the manager is in question.
• D)Variable costs will be higher than projected in the static budget due to the volume variance.

Understand the distribution and function of cartilage in various parts of the body.

Comprehend the dietary implications of genetic disorders such as galactosemia.

Grasp the structural and functional organization of cells and their components.

Identify the components and types of connective tissue.

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Definitions:

Going Concern

The assumption that an entity will continue its operations in the foreseeable future and not go bankrupt or be forced to stop operations.

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Fundamental Qualitative

This term is incomplete without referencing specific context, but it often relates to the essential qualitative characteristics that information must possess to be useful in decision making, such as relevance and faithful representation.

Faithful Representation

A qualitative characteristic of financial information that ensures it accurately depicts the economic phenomena it represents.