The Purpose of a Flexible Budget Is To

question 197

Multiple Choice

The purpose of a flexible budget is to:

• A)remove items from performance reports that are not controllable by managers.
• B)permit managers to reduce the number of unfavorable variances that are reported.
• C)update the static planning budget to reflect the actual level of activity of the period.
• D)reduce the amount of conflict between departments when the master budget is prepared.

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Definitions:

Teamwork Role

The specific part or responsibility assigned to a member within a team, designed to utilize strengths and contribute to the collective effort towards goals.

Problem Solving

Identifying and taking action to resolve problems.

Work Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience, especially in the context of a work environment.

Individual Need Satisfaction

The process of fulfilling personal desires, motivations, and requirements for well-being.