Which of the following is not a true statement?
A) Flexible budgets are prepared for a range of activity.
B) Flexible budgets help provide a basis for management by exception.
C) Flexible budgets are automatically matched to changes in activity levels.
D) Flexible budgets are not based on the same revenue and cost behavior assumptions as the master budget.

Question

Quizplus · Accepted Answer

Flexible budgets are based on the same revenue and cost behavior assumptions as the master budget, but they adjust for different levels of activity.

Which of the Following Is Not a True Statement