A Summary of Expected Costs for a Range of Activity

question 64

Multiple Choice

A summary of expected costs for a range of activity levels that is geared to changes in the level of productive output is the definition of a

• A)continuous budget.
• B)flexible budget.
• C)master budget.
• D)period budget.

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Definitions:

Carrying Value

The amount an asset is valued at on a balance sheet, subtracting depreciation and amortization.

Value Recovers

The process by which the market value of an asset increases after a period of decline.

Double Declining Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in higher depreciation expenses in the early years of an asset's life.

Depreciation Rate

The rate at which an asset's value is reduced over time for accounting and tax purposes.