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vesna_86 [32]
3 years ago
12

What is the primary difference between a static budget and a flexible budget? Select one: a. The static budget contains only fix

ed costs, while the flexible budget contains only variable costs. b. The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels. c. The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management. d. The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold.
Business
2 answers:
antiseptic1488 [7]3 years ago
7 0

Answer: b. The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels

Explanation:

Static budget: It is a type of budget whose expenses or amount will not change even if there is a change in volume. It is planned to remain fixed for the time of it duration irrespective of variations which might affect it outcome. A static budget is commonly used by non profit organization that runs on specific amount of allocation over a period.

Flexible budget: Is just the opposite of static budget, it is a budget whose amount changes with volume, it is a more practicable type of budget than the static budget. It can be used to evaluate performance in successful or unsuccessful areas over a period. Flexible budget is used basically to predict the changes that occurs in cost (fixed or variable).

notka56 [123]3 years ago
4 0

Answer:

The correct answer is letter "B": The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels

Explanation:

The static budget is projected at the end of the year and represents changes in the costs (raw materials) business operations over the year. These are only designed for one level of production volume and do not adjust after they have been produced.

Flexible budgets are calculated by the beginning of the year and can vary based on the level of production during the year. These are calculated for various volume rates and separate fixed and variable costs.

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On June 1, Carla Vista Co. Ltd. borrows $108,000 from Acme Bank on a 6-month, $108,000, 4% note. The note matures on December 1.
evablogger [386]

Answer:

a) Journal entry

Date        Account and explanation      Debit       Credit

June 1                Cash                             $108,000  

                    Notes payable                                      $108,000

b) Adjusting entry

Date        Account and explanation      Debit       Credit

June 30      Interest expense                    $360

                    (108,000*4%*1/12)

                   Interest payable                                    $360

c) Journal entry  

Date        Account and explanation      Debit       Credit

Dec 10        Notes payable                   $108,000  

                  Interest payable (360*6)      $2,160  

                        Cash                                                  $110,160

d)  Total (interest expenses)

Interest payable = $360 * 6

= $2160

5 0
3 years ago
Firms issue callable bonds to give them financing flexibility in case future interest rates. True or False
AURORKA [14]

true is the answer for sure !!

7 0
3 years ago
Read 2 more answers
Suppose the economy is in a recessionary gap. to move equilibrium aggregate output closer to the level of potential output, the
prisoha [69]
The best option is to decrease taxes.
5 0
3 years ago
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Aneli [31]

Answer:

The letter A is the right one.

Explanation:

By promoting deserving employees, Jeffrey will create an environment where employees who act correctly, integrate and present high levels of professionals receive good promotions and will raise their status in the company. This shows that acting in a moral, responsible and ethical manner is rewarding and that is why everyone should follow this level of work that encourages morality and good work.

4 0
3 years ago
Firm A is being acquired by Firm B for $35,000 worth of Firm B stock. The incremental value of the acquisition is $2,500. Firm A
LekaFEV [45]

Answer:

option (b) $34,789

Explanation:

Data provided in the question:

Worth of Firm A = $35,000

Incremental value of the acquisition = $2,500

Number of shares of Firm A outstanding = 2,000

Price of Firm A shares = $16 per share

Number of shares of Firm B outstanding = 1,200

Price of Firm B shares = $40 per share

Now,

Number of shares issued = Worth of Firm A ÷ Price per share of Firm B

= $35,000 ÷ $40

= 875 shares

Value per share after merger

= [ (1,200 × $40) + ( 2,000 × $16 ) + $2,500 ] ÷ [ 1,200 + 875 ]

= $82,500 ÷ 2,075

= $39.759

Therefore,

The Actual cost of acquisition

= Number of shares issued × Value per share after merger

= 875 × $39.7588

= $34788.95 ≈ $34,789

Hence,

The answer is option (b) $34,789

4 0
3 years ago
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