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Why Are Flexible Budgets Powerful Control Tools

Question 87

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.

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