What budgeted amounts appear on the flexible budget?
A) Original budgeted amounts at the static budget activity level
B) Actual costs for the budgeted activity level
C) Budgeted amounts for the actual activity level achieved
D) Actual costs for the estimated activity level

Question

Quizplus · Accepted Answer

The flexible budget shows the budgeted amounts for the actual activity level achieved, which makes it a more accurate reflection of costs than the static budget that uses original budgeted amounts at the static budget activity level. Actual costs (B and D) are not included in the flexible budget, as it is a planning tool rather than a post-hoc analysis.

What Budgeted Amounts Appear on the Flexible Budget