Flexible budgeting is a re porting system wherein the O a. budget standards may be adjusted at management's discretion 0 b. planned level of activity is adjusted to the actual level of activity before the performance report is prepared 0 c. reporting dates vary according to the managerial levels of the users 0 d. packages of activities vary from period to period 1ll'lllhen specified level of safety stock is carried for an item in inventory. the average inventory level for that item 0 is one-half the level of the safety stock 0 decreases by the amount of the safety stock 0 increases by onehalf the amount of the safety stock 0 increases by the amount of the safety stock For a given firm, holding other factors constant, ordering costs per unit 1 p generally O are considered fixed costs O are negotiated O increase in proportion to increases in inventory decline as average inventory increases If a company can borrow at an interest rate of 8%, the tax rate is 30%, and 1p the company's assets are generating an after-tax return of 7%, then financial leverage is: O a. positive O b. negative O c. neither positive nor negative O d. impossible to determine without knowing the return on common stockholders' equity