Select the Correct Statement Regarding Flexible Budgets

question 86

Multiple Choice

Select the correct statement regarding flexible budgets.

• A) A flexible budget can only be prepared for a single level of activity.
• B) A flexible budget is not used for planning.
• C) A flexible budget shows expected revenues and costs at a variety of activity levels.
• D) A flexible budget is also known as the master budget.

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Definitions:

Unconditioned Response

A natural, instinctive response to a stimulus that happens without any previous learning or conditioning.

Conditioned Stimulus

An initially neutral stimulus that, after being associated with an unconditioned stimulus, comes to trigger a conditioned response.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Edward Thorndike

An American psychologist known for his work in comparative psychology and the law of effect.