Which of the Following Statements on Flexible Budgets Is False

question 59

Multiple Choice

Which of the following statements on flexible budgets is false?

• A) It enables companies to control overhead costs.
• B) It can be used to calculate direct material and direct labour variances.
• C) It is the same as a static budget.
• D) It provides a useful basis for comparison between actual and expected costs for a given level of activity.

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Definitions:

Bootstrapping

A statistical method that resamples a single dataset to create many simulated samples, used in assessing the precision of sample estimates.

Resamples

The practice of repeatedly drawing samples from a given dataset with the intention of estimating a population parameter.

With Replacement

Sampling with replacement is a method where each selected unit is returned to the population before the next unit is selected, allowing it to be possibly chosen more than once.

Bootstrapping Method

A resampling technique used in statistics to estimate the distribution of a statistic by sampling with replacement from the original dataset.