A Flexible Budget Is Most Useful

question 63

Multiple Choice

A flexible budget is most useful

• A) for budgeting and planning purposes.
• B) when actual output equals budgeted output.
• C) as a cost control tool to help evaluate performance.
• D) when a product's cost structure includes variable costs only.

---

Definitions:

Outsourcing

The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them.

Goal Specificity

The clarity and preciseness of a goal, which helps in planning and achieving desired outcomes by making expectations clear and measurable.

Theory X Manager

A management style characterized by the belief that employees inherently dislike work and must be closely supervised and coerced to achieve productivity.

Contract

Legally enforceable agreement between two or more parties regarding a specified act or thing.