A Flexible Budget ________

question 158

Multiple Choice

A flexible budget ________.

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

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Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated based on estimated costs and activity levels.

Machine-Hours

A measure of the amount of time a machine is operated during a specific period, used in cost accounting to allocate expenses to products.

Applied Manufacturing Overhead

The amount of manufacturing overhead costs allocated to individual jobs or products based on the predetermined overhead rate.

Predetermined Overhead Rate

A calculated rate used to apply overhead costs to products or job orders, based on estimated costs and activity levels.