Which of the Following Is a Difference Between a Static

question 46

Multiple Choice

Which of the following is a difference between a static and a flexible budget?

• A) Static budgets use the same fixed cost amounts, whereas flexible budgets change the amount of fixed costs at different levels of activity.
• B) Static budgets are based on the same per-unit variable amount, whereas flexible budgets are based on multiple per-unit variable amounts.
• C) Static budgets are based on a single estimate of volume, whereas flexible budgets show estimated costs and revenues at a variety of activity levels.
• D) None of these answers are correct.

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Definitions:

Superordinate Words

are general terms that encompass a broad category of items or concepts, opposite to more specific or subordinate terms.

Subordinate Words

Words that convey a lesser rank or importance and are typically used to combine with other words to form subordinate clauses.

Predisposed

Inclined or susceptible to a particular condition or outcome, often due to genetic or environmental factors.

Sensitive Period

An early period during the development of an organism when it is particularly responsive to environmental stimulation. Outside of this period, the same environmental events have less impact.