The Only Difference Between the Static Budget and Flexible Budget

question 171

True/False

The only difference between the static budget and flexible budget is that the static budget is prepared using planned output.

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Definitions:

Marginal Cost

The increase or decrease in the total cost that arises when the quantity produced is incremented by one unit.

Labor Force

The total number of people who are currently employed or actively seeking employment within an economy.

Opportunity Cost

Represents the value of the best alternative that is foregone when a decision is made to pursue a certain action.

Household Income

The combined gross income of all members of a household, which can include wages, salaries, pensions, government benefits, and any other income.