Using activity-based budgeting, flexible budgets are computed for a single cost driver.

Question

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Activity-based budgeting involves analyzing the costs of various activities that contribute to the production of goods or services, and then allocating the budget based on these activities. Flexible budgets, on the other hand, are computed for a range of activity levels or cost drivers. Therefore, using activity-based budgeting, flexible budgets are not computed for a single cost driver, but rather for multiple cost drivers or activity levels.

Using Activity-Based Budgeting, Flexible Budgets Are Computed for a Single