All of the Following Are Potential Adjustments to Flexible Budgets

question 116

Multiple Choice

All of the following are potential adjustments to flexible budgets except:

• A) Actual volumes are used to calculate variable costs
• B) Costs are updated for any price changes
• C) Fixed costs are adjusted for the effects of actual volumes
• D) Costs that are not controllable by managers are eliminated

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Definitions:

Social Facilitation

An improvement in performance observed when an individual performs an action in the presence of others, compared to when they are alone.

Social Loafing

The tendency for individuals to put forth less effort when working in a group than when working alone.

Group Polarization

The phenomenon where discussions within a group lead to the adoption of more extreme positions or attitudes than initially held by group members.

Normative Influence

A type of social influence that leads individuals to conform in order to be accepted and liked by others, often involving the adoption of group norms.