In a flexible budget, when the activity declines, the total variable cost also declines.

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In a flexible budget, total variable costs are based on the level of activity. As activity declines, total variable costs also decline in proportion to the decrease in activity. This is because variable costs are typically tied to the volume of goods or services produced, so as production decreases, variable costs decrease as well.

In a Flexible Budget, When the Activity Declines, the Total