14) Which of the following statements is false? A. Flexible budgets can be used when there is...
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Question:
14) Which of the following statements is false?
A. Flexible budgets can be used when there is more than one cost driver
B. The fixed component of a budget for a cost has no effect on its activity variance
C. When there is a favorable spending variance, actual activity must be less than budgeted activity
D. To understand performance better, actual results should be compared to the flexible budget
E. If the actual activity exceeds budgeted activity, the activity variance for an expense will never be favorable,
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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