In Flexible Budgets,costs That Remain the Same Regardless of the Output

question 6

Multiple Choice

In flexible budgets,costs that remain the same regardless of the output levels within the relevant range are ________.

• A) allocated costs
• B) budgeted costs
• C) fixed costs
• D) variable costs

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Definitions:

Cash

Liquid currency and assets readily convertible to currency, used by businesses to conduct transactions.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owners' claim on the business assets.

Withdrawals

Funds taken out from a business by its owner(s) for personal use, which reduce the capital accounts in the company’s equity section.

Revenue

The global earnings a company obtains from its key operational trades, especially in goods or services sales.