Why Are Flexible Budgets Powerful Control Tools

question 13

Multiple Choice

Why are flexible budgets powerful control tools?

• A) They allow the preparation of historical reports.
• B) They allow managers to set the budget at a budgeted activity level.
• C) They allow the calculation of what cost should be for the actual level of activity.
• D) They allow the calculation of what cost should be for the budgeted level of activity.

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Definitions:

Team-Assembly Job

Work that involves putting together a group of individuals with varied expertise and skills to complete a project or task.

Job Design Alternative

Different ways of structuring jobs to improve employee satisfaction, productivity, and overall organizational effectiveness, including task rotation, job enlargement, and job enrichment.

Job Enrichment

A method of motivating employees by enhancing the quality and variety of their job tasks and responsibilities.

Evaluating Responsibilities

The process of assessing and determining the obligations and duties of an individual or organization, often to ensure accountability and effective performance.