The amount of fixed costs which appear on the flexible budget is the same as those appearing on the master budget.

Name: The amount of fixed costs which appear on the flexible budget is the same as those appearing on the master budget.
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Question

Quizplus · Accepted Answer

Fixed costs are not affected by changes in activity levels, so they remain the same on both the master budget (which is created based on a predicted level of activity) and the flexible budget (which adjusts for actual activity levels).

The Amount of Fixed Costs Which Appear on the Flexible