Why Does Activity Flexible Budgeting Provide a More Accurate Prediction

question 78

Multiple Choice

Why does activity flexible budgeting provide a more accurate prediction of costs than a traditional flexible budgeting approach?

• A)Costs often vary with more than one driver, and direct labour hours are not correct.
• B)Unit-level drivers are often not highly correlated with direct labour hours.
• C)Direct labour hours are often not measured correctly.
• D)Costs often vary with more than one driver, and non-unit-level drivers are often not highly correlated with direct labour hours.

Identify the characteristics and influence of ethical versus unethical leadership behaviors.

Explore the generational differences in ethical perspectives and the implications for leadership.

Assess the global and cultural limitations of current leadership ethics research.

Comprehend the role of followers in ethical leadership, including types of followers and their reactions to ethical and unethical leaders.

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Definitions:

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio compared to the market as a whole, indicating how sensitive the portfolio is to market movements.

Diversified Portfolio

An investment strategy that spreads investments across various asset classes to reduce risk and potential volatility.

Replacement Stock

Stock issued in exchange for an existing stock, often used in stock splits, mergers, or acquisitions to adjust shareholder holdings without changing overall equity.

Expected Return

The weighted average of all possible returns for an investment, where each outcome is weighted by its likelihood of occurrence.