Select the Incorrect Statement

question 88

Multiple Choice

Select the incorrect statement.

• A) If both the flexible budget and actual results are based on the actual volume of activity, the flexible budget sales variance will be attributable to sales price, not sales volume.
• B) Budget slack is the difference between deflated and realistic standards.
• C) Gamesmanship is decreased if superiors and subordinates participate sincerely in setting mutually agreeable, attainable standards.
• D) For performance evaluation, management should compare actual results to a flexible budget based on the actual volume of activity.

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Definitions:

Scatterplot

A graph that depicts the correlation between two quantitative variables by displaying data points on a Cartesian plane.

Linear Model

A mathematical representation that describes the relationship between one or more independent variables and a dependent variable.

Diameters

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, representing the longest distance across it.

Weekly Salaries

The amount of money or compensation given to an employee for one week of work.