Select the Incorrect Statement

question 88

Multiple Choice

Select the incorrect statement.

• A) If both the flexible budget and actual results are based on the actual volume of activity, the flexible budget sales variance will be attributable to sales price, not sales volume.
• B) Budget slack is the difference between deflated and realistic standards.
• C) Gamesmanship is decreased if superiors and subordinates participate sincerely in setting mutually agreeable, attainable standards.
• D) For performance evaluation, management should compare actual results to a flexible budget based on the actual volume of activity.

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Definitions:

Maypole

Traditionally, a pole decorated with streamers that are held by individuals as they dance around it during celebrations, often associated with May Day.

Hot Seat

A situation or exercise in which an individual is singled out for intensive questioning or scrutiny.

Orientation

The introduction and acclimatization process to new information, environments, roles, or systems.

Group Cohesion

The extent to which members of a group stick together and remain united in pursuit of common goals and objectives.