To Calculate the Numbers in a Flexible Budget,managers Use ________

question 41

Multiple Choice

To calculate the numbers in a flexible budget,managers use ________.

• A) cost functions developed from regression analysis
• B) flexible budget formulas
• C) cost functions obtained from the high-low method
• D) all of the above

---

Definitions:

Price Variance

The difference between the actual price paid for a good or service and its expected (budgeted) price.

Standard Price

The predetermined cost that a company expects to pay for goods or services under normal conditions.

Direct Labor Rate Variance

The variance between the real expense of direct labor and its anticipated (or standard) price, employed in analyzing manufacturing costs.

Actual Costs

The actual expenses incurred in the production of goods or services, including all direct and indirect costs.