In an Activity Flexible Budget, Which of the Following Best

question 129

Multiple Choice

In an activity flexible budget, which of the following best correlates with the fixed cost component?

• A) resources acquired as needed
• B) resources acquired in advance of usage
• C) resources that vary with direct labour hours
• D) resources that do not change as the activity output changes

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Definitions:

Legal Proceeding

A sequence of actions conducted formally in a court of law for the resolution of disputes or criminal charges.

Bankruptcy Trustee

An individual or entity appointed in bankruptcy cases to represent the interests of the bankruptcy estate and the creditors, managing the debtor's property and dividing it among the creditors.

Chapter 7

is a bankruptcy provision under the U.S. Bankruptcy Code that involves the liquidation of a debtor's non-exempt assets to pay off creditors.

Debtor's Business

Refers to a business entity that owes money or other liabilities to another party, known as the creditor.