The Activity Measure Selected for Use in a Variable- and Fixed-Overhead

Multiple Choice

The activity measure selected for use in a variable- and fixed-overhead flexible budget:

A) should be stated in sales dollars.
B) should be approved by the company's president.
C) should vary in a similar behavior pattern to the way that variable overhead varies.
D) should remain fixed.
E) should produce the most attractive results for the individual who will use the budget in managerial applications.