In an activity flexible budget, which of the following best correlates with the fixed 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

Fixed costs are typically associated with resources acquired in advance of usage, as they do not fluctuate with changes in activity levels.

In an Activity Flexible Budget, Which of the Following Best