Which of the Following Is TRUE About a Flexible Budget

question 174

Multiple Choice

Which of the following is TRUE about a flexible budget?
Variant question

• A)It is developed at the end of the period
• B)It is based on the budgeted level of output
• C)It provides favourable operating results
• D)It is another name for management by exception

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Definitions:

Voucher System

A control mechanism in accounting to ensure all business transactions are properly authorized and recorded.

Liabilities

A company's legal financial debts or obligations that arise during the course of business operations, to be settled over time through the transfer of economic benefits including money, goods, or services.

Cash Payment

A transaction in which the payment for a good or service is made with cash at the time of purchase.

Cash Register Tape

A continuous roll of paper that records the transactions processed through a cash register, serving as a transactional record.