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. When budgeted amounts are set at reasonable and achievable levels:Answer Which

ID: 2503878 • Letter: #

Question

. When budgeted amounts are set at reasonable and achievable levels:Answer

Which of the following is considered an operating budget estimate?Answer

A flexible budget is one that:Answer

A) They reflect a "total quality management" philosophy of management. B) A highly efficient department should fall slightly short of budget standards. C) Meeting the budgeted amounts ensures a maximum level of profitability.

Which of the following is considered an operating budget estimate?Answer

A) The prepayments budget. B) The debt service budget. C) The manufacturing cost budget.

A flexible budget is one that:Answer

A) Is revised monthly in the light of changing business conditions. B) Is a compromise plan reflecting diverse views of various supervisors. C) Contains estimated cost data for several different levels of activity. D) Separates factory overhead between the variable and fixed portions D) The capital expenditures budget. D) Failure to stay within the budget is viewed as an unacceptable level of performance.

Explanation / Answer

When budgeted amounts are set at reasonable and achievable levels:

Failure to stay within the budget is viewed as an unacceptable level of performance.