Which of the Following Statements Is True Concerning the Flexible

question 54

Multiple Choice

Which of the following statements is true concerning the flexible budget?

• A)The flexible budget shows the expected relation between costs and volume.
• B)The flexible budget has a fixed cost component which is expected to be incurred regardless of the level of activity.
• C)The flexible budget has a variable cost per unit of activity component where variable costs change in total as the level of activity changes.
• D)all of the above.

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Definitions:

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Key Performance Drivers

The critical factors or activities that have a significant impact on achieving a company's strategic objectives.

Key Performance Indicators

Quantifiable measures used to evaluate the success of an organization, employee, or process in achieving objectives.

Financial Measures

A set of quantitative assessments that evaluate a company's financial performance and health, including profitability, liquidity, and solvency metrics.