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) A flexible budget is also called a variable budget.
D) Flexible budgets are based on different assumptions about cost behavior than those used for static budgets.

Question

Quizplus · Accepted Answer

Flexible budgets are based on the same assumptions about cost behavior as static budgets, but they are designed to change with the level of activity, unlike static budgets which are fixed.

Which of the Following Statements Is FALSE