Select the Incorrect Statement Regarding Flexible Budgets

question 108

Multiple Choice

Select the incorrect statement regarding flexible budgets.

• A) Flexible budgets often show the estimated revenues and costs at multiple volume levels.
• B) A flexible budget is used to compare actual to budgeted amounts.
• C) A flexible budget is also known as a master budget.
• D) Standard prices and costs are used in preparing a flexible budget.

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Definitions:

Team Incentive Plans

Compensation schemes designed to offer rewards to a group or team of employees for achieving specific, collectively measured performance goals.

Measurable Output

Quantifiable results or products that can be produced and assessed in terms of quantity or quality, often used to gauge performance or productivity.

Individual Contributions

Individual contributions refer to the unique skills, knowledge, or efforts an employee brings to their role, impacting the success and outcomes of the organization.

Incentive Compensation

A form of reward given to employees based on achieving specific performance targets, intended to motivate and improve productivity.