Question: i need help with 1-4 1) If activity is higher than expected, total fixed costs should be higher than expected. If activity is lower than
1) If activity is higher than expected, total fixed costs should be higher than expected. If activity is lower than expected, total fixed costs should be lower than expected. 2) Comparing a static planning budget to actual costs is not a good way to assess whether variable costs are under control. 3) In a flexible budget, when the activity declines, the total variable cost also declines. 4) The main difference between a flexible budget and a static budget is that the static budget is not adjusted for changes in the level of activity
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