Costing

22. The primary difference between a fixed budget and a variable (flexible) budget is that a fixed budget:

Includes only fixed costs, while a variable budget includes only variable costs
Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales
Cannot be changed after the period begins, while a variable budget can be changed after the period begins
Is a plan for a single level of sales (or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)

Detailed SolutionThe primary difference between a fixed budget and a variable (flexible) budget is that a fixed budget:

25. Which of the following statements is correct in regards to Kaijen costing? 1. It is a system of cost reduction. 2. It is a system of continuous improvement without negative effects on the quality, staff and security. Select the correct answer:

Only 1
Only 2
Both 1 and 2
Neither 1 nor 2

Detailed SolutionWhich of the following statements is correct in regards to Kaijen costing? 1. It is a system of cost reduction. 2. It is a system of continuous improvement without negative effects on the quality, staff and security. Select the correct answer:

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