Asked by Anshul Suryavanshi on Jul 25, 2024
Verified
A flexible budget enables managers to compute a richer set of variances than a static budget does.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity levels of the business.
Static Budget
A financial plan that does not change over the period for which it is set, regardless of any changes in activity levels.
- Evaluate the use of standard costing for managerial decision-making and control.
Verified Answer
ZK
Zybrea KnightAug 01, 2024
Final Answer :
True
Explanation :
A flexible budget takes into account different levels of activity, allowing managers to compute variances based on actual activity levels. A static budget, on the other hand, is based on a single level of activity and may not be as useful in calculating variances.
Learning Objectives
- Evaluate the use of standard costing for managerial decision-making and control.