Question: When should a company use an activity-based flexible budget with multiple cost drivers instead of a simple flexible budget with one cost driver? when a

When should a company use an activity-based flexible budget with multiple cost drivers instead of a simple flexible budget with one cost driver?

when a significant portion of costs vary with only one cost driver

when a significant portion of costs vary with the number of units of output

when a significant portion of costs vary with the number of units of sales

when a significant portion of costs vary with cost drivers other than units of output

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