Flexible budgeting relies on the assumption that unit variable costs will remain constant within the relevant range of activity.

Question

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Flexible budgeting assumes that unit variable costs will remain constant within the relevant range of activity. This means that the cost per unit will not change based on fluctuations in production or other factors within that range. This assumption allows for more accurate budgeting and forecasting of expenses.

Flexible Budgeting Relies on the Assumption That Unit Variable Costs