Asked by Rachel Sanchez on Jul 28, 2024
Verified
A flexible budget is "flexible" in the sense that a budget can be prepared for any level of activity, but once a budget is set the budget figures are not changed if actual activity later proves to be different than budgeted activity.
Flexible Budget
A budget that adjusts or flexes with changes in the volume or activity level, allowing for more accurate budgeting and analysis.
Standard Costing
A cost accounting system that uses pre-determined costs to value the cost of goods sold and assess the performance.
Labour Efficiency Variance
The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved, often indicating productivity levels.
- Assess the outcomes associated with flexible and static budgeting techniques.
Verified Answer
AM
Abhay MittalAug 03, 2024
Final Answer :
False
Explanation :
A flexible budget is designed to adjust and provide budgeted data for different levels of activity, meaning it can change as the level of activity changes, contrary to the statement that budget figures are not changed.
Learning Objectives
- Assess the outcomes associated with flexible and static budgeting techniques.