Flexible budget contribution margin is equal to ________.
A) actual contribution margin per unit times actual units sold of each product
B) actual contribution margin per unit times budgeted units sold of each product
C) budgeted contribution margin per unit times budgeted units sold of each product
D) budgeted contribution margin per unit times actual units sold of each product

Question

Quizplus · Accepted Answer

A flexible budget adjusts costs and revenues to match the actual level of activity. Therefore, the flexible budget contribution margin is calculated by taking the budgeted contribution margin per unit and multiplying it by the actual units sold. This approach allows for a more accurate comparison between budgeted and actual performance by adjusting for the actual level of sales activity.

Flexible Budget Contribution Margin Is Equal to ________