A Building-Block Approach to Financial Planning Refers to

question 49

Multiple Choice

A building-block approach to financial planning refers to

• A)pursuing conservative investments and activities first.
• B)linking all investments and activities into one plan.
• C)a guide for achieving maximum wealth with limited resources.
• D)phases of the financial life cycle.

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Definitions:

IMA

Stands for the Institute of Management Accountants, a professional organization that promotes the practice of management accounting and financial management.

Price Variances

The difference between the actual cost and the standard cost of goods or services.

Direct Labor Cost Variance

The difference between the budgeted or expected cost of direct labor and the actual cost incurred.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business.