Which of the following statements is incorrect?
A) The company's fixed overhead costs can be expressed as a flexible budget formula.
B) The company's variable costs can be expressed as a flexible budget formula.
C) The company's total production costs can be expressed as a flexible budget formula.
D) A cost must have a fixed and a variable component before it can be expressed as a flexible budget formula.

Question

Quizplus · Accepted Answer

A cost may have only a fixed component or only a variable component, or may have both. However, fixed and variable components are not necessary for a cost to be expressed as a flexible budget formula. Flexible budget formulas can be used for fixed costs, variable costs, or mixed costs.

Which of the Following Statements Is Incorrect