Which of the following statements is false?
A)Flexible budgets help provide a basis for management by exception.
B)Flexible budgets are not based on the same revenue and cost behavior assumptions as the static budget.
C)Flexible budgets are prepared for a range of activity.
D)Flexible budgets are automatically matched to changes in activity levels.

Question

Quizplus · Accepted Answer

Flexible budgets are indeed based on the same revenue and cost behavior assumptions as the static budget. The primary difference is that flexible budgets adjust for different levels of activity, whereas static budgets do not.

Which of the Following Statements Is False