Question

Assume that the expectations of the static budget were met. We can conclude that:

a. the manager is very efficient.
b. the static budget was ill conceived.
c. the effectiveness of the manager is not in question.
d. there is no need for a flexible budget.
e. None of these choices are correct.

Answer 1

When the expectations of the static budget are met, we can conclude that the effectiveness of the manager is not in question. Therefore, the correct option is C.

Step-by-step explanation:

When the expectations of the static budget are met, we can conclude that the effectiveness of the manager is not in question. The static budget is a predetermined budget based on expected levels of activity, and if those expectations are met, it indicates that the manager has successfully achieved the planned results. It does not necessarily imply that the manager is very efficient or that the static budget was ill-conceived.