In an activity flexible budget,the fixed cost component typically corresponds to
A)resources that vary with direct labor hours.
B)resources that vary as the activity output changes.
C)resources acquired in advance of usage.
D)resources acquired as needed.
E)none of these.

Question

Quizplus · Accepted Answer

Fixed costs are typically associated with resources acquired in advance of usage, as they do not change with the level of activity output.

In an Activity Flexible Budget,the Fixed Cost Component Typically Corresponds