Asked by dorian hawthorne on Jul 04, 2024
Verified
A flexible budget is a series of static budgets at different levels of activities.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity.
Static Budgets
A budget that is created for a single level of activity and does not change in response to variations in business activity levels.
- Distinguish between static and flexible budgets and their application in cost management.
Verified Answer
CS
Campus SafetyJul 09, 2024
Final Answer :
True
Explanation :
A flexible budget differs from a static budget in that it adjusts for changes in volume or level of activity. It is still a budget, but it accounts for the variability that can occur in business operations. Therefore, it consists of a series of budgets for different levels of activity or production.
Learning Objectives
- Distinguish between static and flexible budgets and their application in cost management.
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