The activity-based ﬂexible budget provides a more accurate benchmark against which to compare actual costs than does a conventional ﬂexible budget.

Question

Quizplus · Accepted Answer

Activity-based flexible budgets take into account changes in activity levels and adjust cost expectations accordingly, leading to a more accurate benchmark for comparison with actual costs. Conventional flexible budgets do not consider changes in activity levels and may not provide an accurate comparison.

The Activity-Based ﬂExible Budget Provides a More Accurate Benchmark Against