Assume that the expectations on the static budget were met.We can conclude that
A)the static budget was ill conceived.
B)the effectiveness of the manager is not in question.
C)the manager is very efficient.
D)there is no need for a flexible budget.
E)none of these.

Question

Quizplus · Accepted Answer

If the expectations on the static budget were met, it shows that the manager was able to successfully plan and execute the budget. Therefore, the effectiveness of the manager is not in question. However, it is still important to consider a flexible budget for future periods to account for any changes in actual performance. Choice A is not necessarily true as the static budget may still have been a reasonable estimate even if it was not flexible. Choice C is not necessarily true as meeting expectations does not necessarily mean that the manager is very efficient (there may have been some luck or external factors at play). Choice D is not true as a flexible budget is still useful for performance evaluation and planning purposes.

Assume That the Expectations on the Static Budget Were Met