What is the basic difference between a static budget and a flexible budget?
A. A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range
B. A static budget is for an entire production, but a flexible budget is applicable only to a single department
C. Flexible budget allow management latitude in meeting goals, where as a static budget is based on a fixed standard
D. A flexible budget considers only variable costs, but a static budget considers all costs
Answer: Option A
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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