The Purpose of the Flexible Budget Is To

question 154

Multiple Choice

The purpose of the flexible budget is to:

• A) allow management some latitude in meeting goals.
• B) eliminate cyclical fluctuations in production reports by ignoring variable costs.
• C) compare actual and budgeted results at virtually any level of production.
• D) reduce the total time in preparing the annual budget.

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Definitions:

Predictor Variables

Variables used in statistical models that are believed to influence or predict the outcome.

Regression Equation

A formula that represents the relationship between dependent and independent variables in a regression model.

Unit Increase

A term used to describe a single step increase in the value of an independent variable and its effect on the dependent variable in a model.

Regression Equation

An equation that represents the relationship between dependent and independent variables, used to predict outcomes.