The Amount of Actual Operating Income May Differ from the Static

question 105

Multiple Choice

The amount of actual operating income may differ from the static budget amount for operating income because ________.

• A) actual output levels were not the same as in the static budget
• B) actual variable costs were higher than expected variable costs
• C) actual fixed costs were higher than expected fixed costs
• D) all of the above

---

Definitions:

Foreign Exchange

The conversion or trading of one currency into another currency.

Federal Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a given fiscal year.

Aggregate Demand

The total demand for goods and services within an economy at a given overall price level and in a given time period.

Equilibrium Level

Equilibrium level refers to the state in an economy or market where supply equals demand, so there is no tendency for change.