In the Fixed-Period System, Managers Must Make Two Key Decisions

question 21

True/False

In the fixed-period system, managers must make two key decisions: the time interval between reviews and the replenishment level.

---

Definitions:

Customers Served

The number of clients or customers who have received services or goods from a business or organization.

Flexible Budget

A budgeting approach that adjusts for variations in activity levels, providing a more useful comparison of actual to budgeted performance.

Variable Cost Estimates

Predicted costs that vary in total in direct proportion to changes in an activity level or output.

Travel Expenses

are costs associated with business travel, including transportation, lodging, and meals, often reimbursable by an employer.