Question

Which of the following shows budgeted costs that should have been incurred for the actual level...

Which of the following shows budgeted costs that should have been incurred for the actual level of activity during a period of time?

a.

Flexible budget
b.

Static budget
c.

Master budget
d.

More than one of these choices are correct
e.

None of these choices are correct
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Homework Answers

Answer #1

Answer : A. Flexible Budget

A flexible budget shows budgeted  costs that should have been incurred for the actual level of activity during a period of time.

A static Budget also know as aFixed Budget shows a fixed predicted costs or revenue for aperiod which does not change with the level of activity during a period.

Master Budget is a comprehensive budget, and it includes all the divisional budgets. It also includes a veriety of financial forecasts like budgeted Cash flow forecast and Profit and Loss Account. All or part of a master Budget is revised based on actual activity level to derive a flexible budget.

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