In an activity flexible budget, which of the following best correlates with the variable cost component?
A) resources acquired as needed
B) resources acquired in advance of usage
C) resources that vary with direct labour hours
D) resources that do not change as the activity output changes

Question

Quizplus · Accepted Answer

Variable costs are typically associated with resources acquired as needed, as they fluctuate with the level of activity or production.

In an Activity Flexible Budget, Which of the Following Best