Which of the Following Is a Difference Between a Static

question 53

Multiple Choice

Which of the following is a difference between a static and a flexible budget?

• A) Static budgets use the same fixed cost amounts,whereas flexible budgets change the amount of fixed costs at different levels of activity.
• B) Static budgets are based on the same per unit variable amount,whereas flexible budgets are based on multiple per unit variable amounts.
• C) Static budgets are based on single estimate of volume,whereas flexible budgets show estimated costs and revenues at a variety of activity levels.
• D) None of these answers is correct.

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Definitions:

Stockholders' Interests

concerns or priorities of shareholders, often related to the profitability and governance of a company, aiming to maximize their investment returns.

Resource Utilization

The efficient and effective deployment of an organization's resources when and where they are needed.

Goal Attainment

The process of achieving predetermined objectives or targets, often measured by specific criteria or milestones.

Organizational Performance

The degree to which an organization achieves its predetermined objectives, reflecting on its efficiency, effectiveness, and overall success.