Multiple Choice
Why are flexible budgets powerful control tools?
A) They allow managers to set the budget at a budgeted activity level.
B) They allow the calculation of what cost should be for the actual level of activity.
C) They allow the preparation of historical reports.
D) They allow the calculation of what cost should be for the budgeted level of activity.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: Activity-based budgeting classifies costs as direct or
Q73: Match the following terms with the items
Q82: Sarah Lindsay, controller for Cold Cream Company,
Q83: Which of the following may cause an
Q84: Lifter Company uses forklifts to move materials
Q85: A flexible budgetary approach can be used
Q86: A performance report compares actual costs with
Q88: Which budget allows the determination of expected
Q91: Which of the following is NOT a
Q105: An activity-based budgeting system may help support