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a flexible budget shows what budgeted amounts should have been at the actual level of activity. as a result of this change in activity, the flexible budget will show a change in total ______.

Sagot :

Flexible budgeting will show a change in the total of what fixed costs, variable costs and what revenues should have been at the actual level of activity.

Flexible budgeting differs from static budgeting in that it includes a leeway in organizational budgets according to production or sales in a given period.

This type of budget is prepared at the end of the accounting period and is used for organizational control purposes, as it allows for unforeseen situations that may occur in the micro or macro environment.

Therefore, flexible budgeting is used as a control instrument that considers costs as variables based on defined estimates.

Its main advantage is its greater flexibility and ability to keep budgets up to date.

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- revenue

- variable cost

NOT

- fixed costs

- fixed costs in the flexible budget will be the same as fixed costs in the static or master budget.