An activity-based flexible budget is based on budgeted costs for every activity using the related cost driver.

Question

Quizplus · Accepted Answer

An activity-based flexible budget is a type of flexible budget that takes into account the costs for every activity and uses the related cost driver to determine the actual cost incurred. This helps in providing a more accurate picture of the resources required for each activity and enables better decision-making. Therefore, the statement is true.

An Activity-Based Flexible Budget Is Based on Budgeted Costs for Every