In flexible budgets, costs that remain the same regardless of the output levels within the relevant range are
A)allocated costs.
B)budgeted costs.
C)fixed costs.
D)variable costs.
E)estimated costs.

Question

Quizplus · Accepted Answer

Fixed costs do not vary with changes in output levels. Flexible budgets take into account changes in output levels and adjust variable costs accordingly, but fixed costs remain the same. Therefore, C is the best choice.

In Flexible Budgets, Costs That Remain the Same Regardless of the Output