Most Budgets Compare a Standard Budget Amount to Actual Amounts

question 50

Multiple Choice

Most budgets compare a standard budget amount to actual amounts that reflect the true performance of the organization.The budget standard is often a fixed target; however,given that these amounts are static,the budget does not account for unforeseen changes in the operating environment.A solution to this type of problem is to use a(n)

• A)operating budget.
• B)capital expenditures budget.
• C)cash flow budget.
• D)flexible budget.