Asked by
Adriana Zamora
on Nov 13, 2024Verified
A static budget is usually appropriate in evaluating a manager's effectiveness in controlling
A) fixed manufacturing costs and fixed selling and administrative expenses.
B) variable manufacturing costs and variable selling and administrative expenses.
C) fixed manufacturing costs and variable selling and administrative expenses.
D) variable manufacturing costs and fixed selling and administrative expenses.
Static Budget
A budget that remains unchanged over a period of time, regardless of changes in factors like sales volume or revenue.
Manager's Effectiveness
It measures how well a manager achieves the goals and objectives of the business through efficient and effective use of resources.
Variable Manufacturing Costs
Costs that change in proportion to the level of production or sales volume, including costs such as raw materials, direct labor, and certain utilities directly involved in the manufacturing process.
- Delineate the guiding principles and applications of flexible budgets, and their correlation with fixed and variable expenses.
Verified Answer
GS
Learning Objectives
- Delineate the guiding principles and applications of flexible budgets, and their correlation with fixed and variable expenses.