A Static Budget

question 115

Multiple Choice

A static budget:

• A)should be compared to actual costs to assess how well costs were controlled.
• B)should be compared to a flexible budget to assess how well costs were controlled.
• C)is valid for only one level of activity.
• D)represents the best way to set spending targets for managers.

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Definitions:

Assess

To evaluate or estimate the nature, ability, or quality of something.

Benefits

Advantages or positive outcomes that arise from a particular action, product, or service.

Tangible

Refers to physical items or properties that can be seen, touched, and measured.

Measurable

Able to be measured or represented using numbers.