An Activity-Based Flexible Budget Differs from a Conventional Flexible Budget

An activity-based flexible budget differs from a conventional flexible budget in that:

A) the flexible budget is the better basis to use for cost management purposes.
B) the activity-based costing approach is more accurate because costs that were categorized as fixed on the conventional flexible budget become variable when multiple cost drivers are used.
C) the conventional flexible budget approach is more accurate because costs are classified as variable with respect to a single, appropriately chosen cost driver.
D) the conventional budget approach provides a richer view of cost behaviour.
E) the conventional approach is the most widely used by management accountants.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free