Both the master budget and the flexible budget are based on:
A)variable costs.
B)actual costs.
C)standard costs.
D)ideal costs.

Question

Quizplus · Accepted Answer

Both the master budget and the flexible budget are based on standard costs, which represents the expected cost of producing a good or service. A master budget is a comprehensive financial plan that includes all the business activities for a specific period, while a flexible budget is a budget that adjusts to changes in activity levels. Both budgets use standard costs to estimate revenue and expenses, allowing for better budgeting and forecasting.

Both the Master Budget and the Flexible Budget Are Based