Fixed costs should be included in a flexible budget even though they do not change when the level of activity changes.

Question

Quizplus · Accepted Answer

Fixed costs may not change with changes in activity levels, but they are still an important component of a flexible budget as they represent an ongoing expense that must be accounted for in budgeting and financial planning. Including fixed costs in a flexible budget allows for a more accurate reflection of overall expenses and can help with making informed business decisions.

Fixed Costs Should Be Included in a Flexible Budget Even