Which of the following statements is FALSE?
A)Flexible budgets are prepared for a range of activity.
B)Flexible budgets are matched to actual levels of activity.
C)Flexible budgets facilitate management by exception.
D)Flexible budgets are based on different assumptions about cost behavior than those used for static budgets.

Question

Quizplus · Accepted Answer

Flexible budgets use the same assumptions about cost behavior as static budgets; they adjust for different levels of activity but do not change the underlying cost behavior assumptions.

Which of the Following Statements Is FALSE