What is the primary difference between a static budget and a flexible budget?
a) The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold.
b) The static budget contains only fixed costs, while the flexible budget contains only variable costs.
c) The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management.
d) The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels.
d) The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels.
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Which of the following organizations strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee?
A. The Internal Revenue Service B. The FBGC C. The ERISA D. Employee Benefit Research Institute E. The Bureau of Labor Statistic
Eric Farber, a principal, engaged Ethel Waters for 6 months as his exclusive agent to sell specific antiques.
A. The creation of such an agency must be in writing. B. If the principal sells the antiques through another agent, he will be liable to Waters for damages. C. The principal does not have the legal power to terminate the agency because it is an agency coupled with an interest. D. Waters has impliedly guaranteed that she will sell the antiques within the 6-month period.