A Static Budget Report

Multiple Choice

A static budget report

A) shows costs at only 2 or 3 different levels of activity.
B) is appropriate in evaluating a manager's effectiveness in controlling variable costs.
C) should be used when the actual level of activity is materially different from the master budget activity level.
D) 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.