An after-the-fact flexible budget is based the actual level of activity achieved in the period.

Question

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An after-the-fact flexible budget adjusts the budgeted amounts for each line item based on the actual level of activity achieved during the period. This allows for a more accurate reflection of the costs that should have been incurred given the actual level of activity, rather than the costs that were budgeted for a different level of activity.

An After-The-Fact Flexible Budget Is Based the Actual Level of Activity