When Should a Company Use an Activity-Based Flexible Budget with Multiple

question 7

Multiple Choice

When should a company use an activity-based flexible budget with multiple cost drivers instead of a simple flexible budget with one cost driver?

• A) when a significant portion of costs vary with only one cost driver
• B) when a significant portion of costs vary with the number of units of output
• C) when a significant portion of costs vary with the number of units of sales
• D) when a significant portion of costs vary with cost drivers other than units of output

---

Definitions:

Civil Rights Act

Landmark legislation passed in the United States in 1964, prohibiting discrimination on the basis of race, color, religion, sex, or national origin.

American Values

Core principles that are widely accepted in the United States, including liberty, democracy, equality, individualism, unity, and diversity.

White Racism

Racial prejudice and discrimination originating from individuals who identify as white.

Privileged Position

A status that affords an individual or group certain advantages or benefits over others, often due to systemic inequalities in society.