Question

A major weakness of flexible budgets is that:

A. they are valid for only a single level of activity.

B. they ignore fixed costs.

C. they compare actual costs at one level of activity to budgeted costs at a different level of activity.

D. none of these is a major weakness of flexible budgets.

Answer 1

Flexible budgets compare actual costs at one level of activity to budgeted costs at a different level of activity.

Step-by-step explanation:

A major weakness of flexible budgets is that they compare actual costs at one level of activity to budgeted costs at a different level of activity.