Which of the Following Is True of a Static Budget

question 70

Multiple Choice

Which of the following is true of a static budget?

• A) A static budget represents certain goals that a firm wants to achieve.
• B) It divides costs into those that vary with units of production and those that are fixed with respect to unit-level drivers.
• C) It ascertains how well costs were controlled during a year.
• D) It is best used to create a meaningful performance report.
• E) None of these is correct.

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Definitions:

Effective-interest Method

The effective-interest method is a technique used in amortizing the discount or premium on bonds payable, where the interest expense recorded over time corresponds to the bond's carrying value.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, recognized on the income statement.

Anthropocentric

Pertaining to the belief that human beings are the central or most significant species on the planet, often regarding nature and environment from a human-centered perspective.

Biodiversity

The variety of life in the world or in a particular habitat or ecosystem, including the variety of species, genetic variations, and ecosystems.