With Regard to Flexible Budgets, Which of the Following Statements

question 211

Multiple Choice

With regard to flexible budgets, which of the following statements is true?

• A)They are prepared for one level of sales volume.
• B)Managers use them to help plan for uncertainties.
• C)They are prepared by the accounting department on an annual basis.
• D)They are designed to estimate revenues only.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Binary Variable

A variable that has only two possible values, often represented as 0 and 1, used to denote presence or absence, success or failure, and similar dichotomies.

Optimal Solution

The most efficient, effective, or desirable solution to a problem or the best decision given the constraints.

Total Cash

The overall amount of liquid assets available to an individual or organization.