A flexible budget expresses variable costs on a per unit basis and fixed costs on a total basis.

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A flexible budget is designed to provide estimates of what revenues and costs should have been given actual level of output. It expresses variable costs on a per unit basis because they change according to the level of activity, while fixed costs are expressed on a total basis because they remain constant regardless of the level of activity.

A Flexible Budget Expresses Variable Costs on a Per Unit