The Flexible Budget Variance Is Influenced Most Heavily by Actions

question 188

Multiple Choice

The flexible budget variance is influenced most heavily by actions of

• A)The budget committee.
• B)The operations personnel.
• C)The sales personnel.
• D)The executives of the company.

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Definitions:

Required Return

The minimum expected return an investor demands for investing in a particular asset, considering its risk.

Per Share FCFE

The amount of Free Cash Flow to Equity available per share of a company's stock, indicating the dividend-paying ability and financial health of the company.

Required Rate of Return

The smallest percentage of yearly earnings from an investment necessary to attract individuals or businesses to invest in a certain security or project.

FCFF Valuation Model

The FCFF Valuation Model estimates a company's value by using its Free Cash Flow to the Firm (FCFF), discounting the cash flows to their present value using the weighted average cost of capital.