Flexible budgets do NOT provide
A)expected costs for a range of activity.
B)budgeted costs for the actual level of activity.
C)budgeted costs for a predetermined level of activity.
D)expected costs for the actual performance level.

Question

Quizplus · Accepted Answer

Flexible budgets are designed to provide budgeted costs for different levels of activity, including the actual level of activity (B), and expected costs for a range of activity (A) and the actual performance level (D). They do not provide budgeted costs for a predetermined level of activity without considering the actual level of activity, which is a characteristic of static budgets.

Flexible Budgets Do NOT Provide