138k views
1 vote
In developing a flexible budget within a relevant range of activity,

a. only fixed costs are included.
b. it is necessary to prepare a budget at 1,000 unit increments.
c. variable and fixed costs are combined and are reported as a total cost.
d. it is necessary to relate variable cost data to the activity index chosen.

User Gnllucena
by
7.9k points

1 Answer

4 votes

Answer: d. it is necessary to relate variable cost data to the activity index chosen

Step-by-step explanation:

The activity index shows how various activities have an impact on the cost of production.

When developing a flexible budget within a relevant range of activity, ome must relate variable cost data to the activity index chosen to ensure that it is indeed variable.

User Aquaman
by
8.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.