For which of the following is a cost formula developed for activity flexible budgeting?
A) each activity as a function of activity drivers
B) each activity as a function of resource drivers
C) each overhead item as a function of resource drivers
D) each overhead item as a function of direct labour hours

Question

Quizplus · Accepted Answer

Activity flexible budgeting involves developing cost formulas for each individual activity as a function of activity drivers. This allows for a more accurate and flexible budgeting process, as the cost of each activity can be predicted based on the level of activity expected. B, C, and D are not correct choices as they do not align with the focus of activity flexible budgeting.

For Which of the Following Is a Cost Formula Developed