By using a master budget, changes in activity level cannot cause any variances between the flexible budget and actual results.

Name: By using a master budget, changes in activity level cannot cause any variances between the flexible budget and actual results.
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Question

Quizplus · Accepted Answer

A master budget is based on a fixed level of activity, while a flexible budget adjusts for changes in activity levels. Variances can occur when actual activity levels differ from those assumed in the master budget.

By Using a Master Budget, Changes in Activity Level Cannot