When a Flexible Budget Is Used in Performance Evaluation, Actual

question 204

True/False

When a flexible budget is used in performance evaluation, actual costs are compared to the static planning budget rather than to what the costs should have been for the actual level of activity during the period.

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Definitions:

Imbalance of Trade

A situation where the value of a country's imports and exports is not equal, leading to a trade surplus or deficit.

Exceeded

means to go beyond an established limit or surpass a certain standard or level.

Lower

In economic terms, it refers to a decrease in value, price, rate, or level of a given variable or entity.

Trade Deficit

An occurrence where the total value of a country's imports surpasses the value of its exports, creating a negative trade balance.