A major weakness of flexible budgets is that:
A)they are valid for only a single level of activity.
B)they ignore fixed costs.
C)they compare actual costs at one level of activity to budgeted costs at a different level of activity.
D)none of these is a major weakness of flexible budgets.

Question

Quizplus · Accepted Answer

Flexible budgets are designed to adjust for different levels of activity, and they account for both variable and fixed costs, making none of the given options a major weakness.

A Major Weakness of Flexible Budgets Is That