Question: When the original budget amount for variable cost items based on planned activity is adjusted (flexing the budget), a budget (allowance/variance) is calculated. It is

When the original budget amount for variable cost items based on planned activity is adjusted (flexing the budget), a budget (allowance/variance) is calculated. It is based on actual activity for the period, to compare actual costs incurred with costs expected to be incurred at the actual level of activity that was achieved

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