Which of the Following Statements Is Correct

question 38

Multiple Choice

Which of the following statements is correct?

• A) A flexible budget is calculated for actual activity level only.
• B) A static budget can be calculated for a number of activity levels.
• C) A static budget is prepared for budgeted activity level only.
• D) Both A and C

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Definitions:

Exchange Value

The worth of a good or service as determined by the market, or the amount of goods and services that can be exchanged for it.

Bretton Woods System

An international monetary system established in 1944 that set up fixed exchange rates anchored by the U.S. dollar, which was convertible to gold.

Pegged Exchange Rates

An exchange rate regime where a country's currency value is fixed or tied to another currency or a basket of currencies.

U.S. Dollars

The official currency of the United States, widely used as a benchmark and reserve currency around the world.