qz10 - Question1 Correct. Whatisbudgetarycontrol?

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Question 1  Correct.     What is budgetary control? Another name for a flexible budget. The degree to which the CFO controls the budget. The process of providing information on budget differences to lower level managers. The use of budgets in controlling operations Correct.     A static budget report is appropriate in evaluating a manager's effectiveness in controlling variable costs. should be used when the actual level of activity is materially different from the master budget  activity level. may be appropriate in evaluating a manager's effectiveness in controlling costs when the  behavior of the costs in response to changes in activity is fixed. shows costs at only 2 or 3 different levels of activity Correct.     What is the primary difference between a static budget and a flexible budget? The static budget is prepared for a single level of activity, while a flexible budget is adjusted for  different activity levels. The static budget is constructed using input from only upper level management, while a flexible  budget obtains input from all levels of management. The static budget contains only fixed costs, while the flexible budget contains only variable 
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This note was uploaded on 11/07/2011 for the course ACCOUNTING 560 taught by Professor Alper during the Fall '09 term at Strayer.

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qz10 - Question1 Correct. Whatisbudgetarycontrol?

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