Which of the Following Is NOT a Benefit of a Static

question 206

Multiple Choice

Which of the following is NOT a benefit of a static budget performance report?

• A) It is useful in evaluating a manager's effectiveness when actual sales approximate budgeted amounts.
• B) It is useful in evaluating a manager's control over fixed costs.
• C) It is useful in evaluating a manager's control over variable costs.
• D) It is useful in evaluating a manager's control over fixed selling and administrative expenses.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate costing information.

Product B

An arbitrary term that could refer to any second product offered by a company in a given context.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing a product, often used as a basis for allocating costs.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined overhead rate and the volume of goods produced.