The Primary Difference Between a Fixed (Static)budget and a Flexible

question 25

Multiple Choice

The primary difference between a fixed (static) budget and a flexible budget is that a fixed budget

• A)cannot be changed after the period begins,whereas a flexible budget can be changed after the period begins.
• B)is concerned only with future acquisitions of fixed assets,whereas a flexible budget is concerned with expenses that vary with sales.
• C)is a plan for a single level of production,whereas a flexible budget is several plans (one for each of several production levels).
• D)includes only fixed costs,whereas a flexible budget includes only variable costs.

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Definitions:

Psychodynamic Theories

Theories that emphasize the influence of the unconscious mind and childhood experiences on personality and behavior.

Behavioral Theories

Refer to a range of theories in psychology that emphasize the importance of observable behaviors and the ways in which they are learned.

Anal-retentive Trait

A personality characteristic associated with those who are excessively orderly, neat, rigid, and controlling, stemming from Freudian psychoanalytic theory regarding psychosexual development stages.

Perfectionism

A characteristic of an individual marked by the pursuit of perfection and the establishment of extremely high standards for performance.