Differences between the static planning budget and the flexible budget show what should have happened because the actual level of activity differed from what had been planned.

Question

Quizplus · Accepted Answer

The statement is true as the static planning budget is based on a specific level of activity, while the flexible budget adjusts to actual levels of activity. Comparing the differences between these two budgets can help identify what should have happened based on the actual activity levels.

Differences Between the Static Planning Budget and the Flexible Budget