The selection of levels of activity to depict a flexible budget
1) will be within the relevant range.
2) is largely a matter of expediency.
3) is governed by generally accepted accounting principles.
A) 1
B) 2
C) 3
D) 1 and 2

Question

Quizplus · Accepted Answer

1) The levels of activity chosen for a flexible budget should always be within the relevant range to ensure accuracy and relevance.

2) The selection of levels of activity may be a matter of expediency, as it may not always be possible or practical to include every possible level of activity in the budget. However, this should not take precedence over relevance and accuracy.

3) Generally accepted accounting principles do not specifically govern the selection of levels of activity for a flexible budget, but rather prescribe rules and guidelines for financial reporting in general.

The Selection of Levels of Activity to Depict a Flexible