With an Activity Flexible Budget, a Budget Variance Is Calculated

question 168

Multiple Choice

With an activity flexible budget, a budget variance is calculated

• A)based on a flexible budget based on cost for actual units produced.
• B)based on a flexible budget based on various activity drivers for actual units produced.
• C)based on a flexible budget based on flexible manufacturing.
• D)based on a flexible budget based on committed resources for actual units produced.

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Definitions:

Cash-flow Hedge

A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a forecasted transaction.

Financial Statements

Financial statements are written records that convey the business activities and the financial performance of a company, including balance sheet, income statement, and cash flow statement.

Net Income

Net income is the total profit of a company after all expenses and taxes have been subtracted from total revenue.

Hedge Accounting

Accounting techniques that modify the standard rules of accounting to recognize the offsetting effects on the financial statements of both the hedged item and the hedging instrument.