The slope of the flexible budget-line is the
A)selling price per unit.
B)variable cost per unit.
C)fixed cost per unit.
D)contribution margin per unit.
E)operating profit per unit.

Question

Quizplus · Accepted Answer

The slope of a budget line represents the rate at which one variable (usually units of output) must increase to compensate for a decrease in another variable (usually cost). In a flexible budget, the variable cost per unit changes based on the level of activity, while the fixed costs remain the same. Therefore, the slope of the flexible budget line would be represented by the variable cost per unit.

The Slope of the Flexible Budget-Line Is the