Which statement is true concerning the selection of the level of activity used in the flexible budget?
A)The activity level should be the same as actually achieved.
B)The activity level should be the same as found in the master budget.
C)Any activity level can be used in the flexible budget.
D)The activity level should be the level which maximizes profit.

Question

Quizplus · Accepted Answer

The activity level used in the flexible budget should be the same as actually achieved, as this will provide the most accurate information about actual costs and revenues. Using a different activity level could result in misleading information about the company's performance.

Which Statement Is True Concerning the Selection of the Level